How to sell options in zerodha


When the contract price goes against you, your MTM losses increase and your margin erodes. Need help to understand regarding Index options. If you have bought 1st week of the month for Rs 5 and if NTPC is still at at the end of the month, the premium would have already dropped below 5.

From how to sell options in zerodha day it will show under cash balance. Which strike you want to choose will depend on your strategy, if the idea is to hedge, there is no point shorting call to reduce your risk by just Rs 2. Only the options which are out of money on expiry will be 0.

But as an RMS team, we are usually considerate with such hedged positions, and give extra time for you to bring in the MTM losses. Jai, option writing involved unlimited risks. Its back on in NSE website as well. If How to sell options in zerodha am writing a call option in currency what will be the margin amount will be hold by you assuming that rupee trading at Click on the stock widget button to view a fundamental data snapshot for stocks, both in marketwatch and holdings.

Vinodh, when you write options, a considerable amount of margin is blocked which takes care of such a risk. The calls generated by this system are based on formulas and these are not recommendation to any person to buy or sell any securities. How soon can I withdraw this? Do read up the module.

Since there is almost always enough volatility in Nifty, I should be able to square-off my position easily and not worry about liquidity. In the bargain I net Rs Rs — Rs …. Hence you calculate margin for sell side.

I understand buying ce or pe. Is it a good idea? There may be some solution to this. In the example above if Nifty were to expire today atthe total options that would expire worthless would be:

But, I have still have open position for the same. The idea of shorting the OTM call is to basically be able how to sell options in zerodha hedge your long call position. The buyers are people who are either covering their shorts if OI is decreasing or if OI is increasing would mean people trying to hit a lottery.

People will never follow advise properly, but the adviser is liable for it. Could you please clarify. For overnight, when the premium goes up from Rs7 to Rs13, the margin required will also go up by Rs 6 or Rs How to calculate delta,gamma, theta,vega values of nifty options? I mean you are in how to sell options in zerodha position to comment on statistics.