Margin requirement for Option spreads

Hi All,

I'm a newbie in options trading so, sorry if this is a silly question.
If we are trying to build a straddle using options on nifty by simultaneously buying a call and put at same strike price, how much margin do we need to pay ?
Do we have to pay the full margin requirement or only the difference ?

Thanks,
termite

Hi,

If you are Buying PUT & CALL at same time or different time you need to pay Full premium of Both....(only if you SELL Put or Call Margin requirement arises..I never Sold so no idea about margin)..

Plz go thru Threads in Options Category for Details (Lot of Info Available).

"Option Buy recomendation " By Ghosh is a very Good System..Plz chk that thread

Regrads

Kumar

Thanks Kumar.

So for straddle, we pay the premium for both.
I tried searching the threads for margin requirement and found that its very dependent on the broker
Can anyone tell me the margin requirement when we sell a call and buy a call simultaneously to create a calendar spread ?

Thanks,
termite

Margin requirement is exactly the same as if there is no hedge. Be very careful of far month options even in Nifty as there is no far month volume if the option moves deep ITM or OTM.

Thanks pasha.

So if I buy nifty 3000 call and sell nifty 3200 call, I end up paying
premium for 3000 call and margin for 3200 call ?

Yes. If you buy 3000 put and sell 2800 put, and have 3000 call with 3200 call sold. margin is applicable on both sides.

Margin is just blocked from your acct balance. You can very well deposit your long term stocks and create margin limit.. so no cash will be blocked for magin part.
ICICI charges roughly 40k for written ATM Option. For Long option, there is no margin.
This margin amount keeps changing as underlying moves. If the writtne call comes to ITM, then margin goes up..(obviously, as your short position is loosing money now and becomine more risky) so u will have to bring additional margin.

Happy Trading
Best will be chk with your broker.

Thanks again AW10, Pasha. It's quite clear now