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#1
8th December 2007, 11:59 AM
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option question
hi,
call writing (sell) questions - 1. what is trigger price associted with call sell? 2. how is margin calculated? what happens when margin is not enough? Say reliance industry call sell is made at strike price 3100 at a premium of 45. Margin on position is 46k. Now ICICIDirect under 'f&o open position' shows 2 options. One is trigger price as 2991 and second is an option to 'Add margin'. What is the meaning of strike price? Under what circumstance I need to add margin? What will happen if more margin is not added? What are the possibilities for this option in case underlying stock (reliance) reaches values of below 3100, 3100, above 3100. thanks. 
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#2
8th December 2007, 12:22 PM
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Re: option question
[quote=sandy_m;135892]hi,
call writing (sell) questions - 1. what is trigger price associted with call sell? 2. how is margin calculated? what happens when margin is not enough? Say reliance industry call sell is made at strike price 3100 at a premium of 45. Margin on position is 46k. Now ICICIDirect under 'f&o open position' shows 2 options. One is trigger price as 2991 and second is an option to 'Add margin'. What is the meaning of strike price? Under what circumstance I need to add margin? What will happen if more margin is not added? What are the possibilities for this option in case underlying stock (reliance) reaches values of below 3100, 3100, above 3100. ur mixing mixing futs with options friend..... if ur taking a position @3100 strike price....u r playing options...so the 45 rs premium paid is all that u have to pay....THERE R NO MARGINS FOR OPTIONS....  margins r required only for futures....... yes margin will b required in case a call is sold short or a put is bought long.... Last edited by sudoku1; 8th December 2007 at 12:24 PM. Reason: *
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#3
8th December 2007, 07:22 PM
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Re: option question
[quote=sudoku1;135897]
Quote:
All this shall not be required if one BUYS a CALL!!! Regards. R K Karnani
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