@zerodha
i can new to the markets and have not written options b4 .
can u tell me the margin required for writing options if i want to carry overnight
also is it same with different strike put/call option i.e. is the same margin required to write 5300 n 5400 call/put option or does it vary for differnet strikes?
Option writing margins vary based on strike.. The more in the money the option, the higher the margin requirement and if the option is out of money it is vice versa...
The following might be of help to you:
For selling options, the margin requirement is similar to Futures margins. The margin requirement varies depending on the
strike price and expiry date.
Strike Price of Option Margin Required
At the Money Same as Futures
In the Money 30% more than Futures Margin
Deep in the Money 60% more than Futures Margin
Out of the Money 20% less than Futures Margin
Deep out of the Money 30% less than Futures Margin
The writing/sell price of Options increases based on the expiry date of the option. The near month option will use 20% more margin than the present month option. And similarly, the far month option will use 30% more margin than the present month option.
