Zerodha....

[comm4300]

Zerodha:

do you allow covered writing calls if the underlying shares were in my demat account [IL&FS]?
how much margin benefit will be provided?
coz i have the entire lot size of shares in my demat.

and lastly how to go about executing covered call in NOW terminal [as i am using shares from demat against writing call].

 

[Zerodha]

Zerodha:

do you allow covered writing calls if the underlying shares were in my demat account [IL&FS]?
how much margin benefit will be provided?
coz i have the entire lot size of shares in my demat.

and lastly how to go about executing covered call in NOW terminal [as i am using shares from demat against writing call].

Hi,

Covered call implies holding a long position in an asset and writing calls against the same asset to generate income from the it.

Covered call as a strategy can definitely be used by a Zerodha client, but please be aware that no margin benefit will be given for the same.You need to have enough funds to buy shares plus margins required to write the options against the asset.

Please leave your contact information on [email protected]. We will provide your information to ILFS who will get in touch with you and explain about Margin funding. ILFS funds such activities at a very competitive rates.

 

[abliss_ready]

Dear zerodha,
GREETINGS FROM TRADERJI PEOPLE,


FIRST OF ALL WE THANKS TO U FOR A FLAT BROKERAGE SCHEME, ITS HELPFULTO TRADERS..
AT THE SAME TIME NOW SOFTWARE WORKING IS MORE TIME UNCONDITIONAL BIAS,

THE ONE OF MAJOR ISSUE IS:

We have observe your brokerage calculation method for both cash and F&O segment,

We find major difference between you and other broking firm,

For example:

Rk did not collect stamp chareges but they collect only in the name of other charges at .00225% and
Rk globel collect NSE CHARGES ONLY 0 .0035 ON TOTAL TURNOVER BUT U HAVE COLLECTED 0 .0054 , SO ITS EXCESS COMPARE OTHER BROKERS..

SO PLS EXPLAIN THE ABOVE DIFFERENCES

WE WOULD EXPECT YOUR VALUABLE REPLY THE ABOVE ...

This difference in Transaction tax has been explained many times in the same thread.. Please go through the thread.

The bottom line is, people trading in larger lot sizes will save a lot of brokerage compared to any other broker....

 

[TradeRaid]

This difference in Transaction tax has been explained many times in the same thread.. Please go through the thread.

The bottom line is, people trading in larger lot sizes will save a lot of brokerage compared to any other broker....

I swear! If you 'actually' trade - and not just talk about trading... you'll see the benefits Zerodha offers with its no-frills brokerage. I have been saving a lot more money in the past few months just by trading with Zerodha...

Only if you trade will you know the advantages... not otherwise.

 

[Subhadip]

when ur starting commodity trading sir?

i want ur commodity trading to be opened ..

give me a positive answer please

when ur starting sir ? commodity trading?

 

[sub0me]

I have transferred money today 29th, April at 2:17 PM, via nowonline website from my linked HDFC Bank Account to my Zerodha Trading Account...
This is my first time fund transfer after account opening...
Transaction was successful...
And the amount is showing as Pay in amount on nowonline limit tab from then...
but not as cash margin available...
and on NOW exe terminal 0 is showing under limit option...

My questions are...
[1] Can I start my trading with this amount from Monday, 2nd May,? If not how long will it take to show the money as available cash margin?
[2] Isn't it, the instant fund transfer via linked HDFC Bank or Axis Bank means - I can use the money instantly after the successful transaction or not?

Please clarify my doubts...
Thanks in advance...

 

[comm4300]

Hi,

Covered call implies holding a long position in an asset and writing calls against the same asset to generate income from the it.

Covered call as a strategy can definitely be used by a Zerodha client, but please be aware that no margin benefit will be given for the same.You need to have enough funds to buy shares plus margins required to write the options against the asset.

Please leave your contact information on [email protected]. We will provide your information to ILFS who will get in touch with you and explain about Margin funding. ILFS funds such activities at a very competitive rates.

Thank you. Not interested in margin funding.

Question: If i have been accumulating 125 shares of SBIN over a 1 year period and they are in my demat account. Now i wish to use those shares to generate some income by way of writing calls on them.
Would NOW let me write call on SBIN shares? w/o margin? coz i pledge my shares to you for this purpose.

Any clarity in this regards would help me get started.

 

[Zerodha]

Thank you. Not interested in margin funding.

Question: If i have been accumulating 125 shares of SBIN over a 1 year period and they are in my demat account. Now i wish to use those shares to generate some income by way of writing calls on them.
Would NOW let me write call on SBIN shares? w/o margin? coz i pledge my shares to you for this purpose.

Any clarity in this regards would help me get started.

In reality,Zerodha would not be taking pledge of any securities from you.The shares that you own would be lying with your DP in your Demat Account.You could use the NOW Software to write SBIN calls,but are required to maintain such margin that is required to write those calls.

Hope this clarifies

 

[PGDIMES]

In reality,Zerodha would not be taking pledge of any securities from you.The shares that you own would be lying with your DP in your Demat Account.You could use the NOW Software to write SBIN calls,but are required to maintain such margin that is required to write those calls.

Hope this clarifies

Are you saying that zerodha doesn't allow to pledge the shares in the ILFS demat account after keeping the haircut as margin of safety?

I think the member tried to ask that - if say, he has 125 shares of SBI in ILFS demat account and he pledged them at x% haircut, then can't he get margin of (100-x)% of 125 share value of SBI every day? If the answer is yes, why can't he write a call of SBI (which requires 20-22% of margin per lot) without blocking any more margin?

 

[Zerodha]

Are you saying that zerodha doesn't allow to pledge the shares in the ILFS demat account after keeping the haircut as margin of safety?

I think the member tried to ask that - if say, he has 125 shares of SBI in ILFS demat account and he pledged them at x% haircut, then can't he get margin of (100-x)% of 125 share value of SBI every day? If the answer is yes, why can't he write a call of SBI (which requires 20-22% of margin per lot) without blocking any more margin?

Sorry PGDIMES and COMM,

There was some misunderstanding, I was out of town for the last 1 week and had assigned someone else to post the comments on the forum...

Yes you can definitely use the stocks as margin after the applicable haircut, all you need to do is ensure that there is enough funds in the trading account for making up for any kind of mtm losses on the derivatives positions...

Cheers...

Sachin