How much money is needed to cover a sell of call or put of nifty.

How to calculate the money needed to cover a sell of nifty call/put. Is it calculated based on premium or based on deal value(ie strike price*lot size)

I tried to sell a put of jan. 4500 nifty but i was not allowed to sell saying insufficient amount to cover transaction. I had allocated around 8000 Rs. exclusively for F&O.
my broker is icici.

The margine to Sell an Option, i.e. a Call or Put is same as that for Buying/Selling a Futures Lot!! However you get credit for the amount for which the Option is sold.
In the above case suppose the margine for Nifty Futures Lot is Rs.25000.00 and Nifty 4500 Put is Sold for Rs.3.00, then you have to pay Rs.25000/- less 50(lot size)*Rs.3.00=150.00 (25000 less 150) Plus Brokerage etc. STT is chargeable on the Premium Amount only.

Hi,

I am a newbie trying to learn the basics of options trading.
have a doubt here, Say I sell a CALL trading at premium near 500 (example:4300 call at 457 as on 6th FEB). how much would be charged at base level (before adding the brokerage, tax etc..)?
will it be 25000 - 457*50 (which would be around 2000) only?

Appreciate your help.

Thanks,
Madhav.

Amount of margin required to sell options is

(Strike Price + Premium)*Lot Size*margin percentage

The margin percentage varies from broker to broker. The exchange fixes the SPAN margin. Some brokers charge just the SPAN and some take an additonal cushion. Your broker will answer the query the best.

If the 4800 strike price is selling at a premium of 100 and the margin on Nifty is 10% then the margin needed in the account is
(4800+100)*50*10% = 24500/-. This amount is debited in your account the moment you sell the option. The premium amount of 100*50 = 5000/- is credited into your account the next day as the settlement in all FNO is T+1 day.