Naked Call Writing.

Hello Fellow Traders,

I'm using Sharekhan Platform for Trading. But, I understand that Sharekhan does not allow NAKED CALL WRITING.

I'd appreciate if you guys let me know which Brokerages allow Naked Call Writing.

Expecting a very quick reply.

Sangfroid.

I have traded on Sharekhan platform and sold options naked....they have no issues as long as margin requirements are met with. Any broker will allow you to sell naked call...I dont find any issues in that...

Smart_trade

Hey Smart Trade...

Thanks for reverting back.

Wjen I try writing naked call/put option, my transaction gets rejected with remarks as "Alert !!! Options writing is not allowed for this group".

Kindly let me know how come you are writing naked options.

Are u maintaining any separate margin in addition to premium or is it a covered call.

Expecting a very quick reply,

Sangfroid

I am no more trading with Sharekhan but I had no special account or margins....naked call selling was allowed ...not aware if they have introduced such restrictions recently...

But I am trading with three other brokers and all allow naked call selling...no one has any restrictions whatsoever....

Best way is to talk to Sharekhan relationship Manager and sort out the issue... Good luck...

Smart_trade

Hey Smart Trade,

Once again Very Thanks for reverting back.

As you mentioned that you deal with other brokers for Naked Options Writing, Could u plz let me know, who they brokers are, so that I can open trading a/c with them as well and start writing naked options. Moreover, which broker of yours has low brokerages esp. for FNO segment.

Awaiting ur reply.

Sangfroid.

Try India Bulls...they have no issues abt naked option selling....practically all allow that...I dont know why your broker is so fussy....Hope you are registered in F & O segment....otherwise if you are registered with cash mkt segment...they may be blocking your F & O trades....are you able to put through a futures trade ?...chk that...

( I have no interest with any broker....only suggesting India Bulls because as of now I have naked options sold in my India Bulls account....so no issues with them...)

Smart_trade

Why Sharekhan may not permit selling options is because account size needs to be bigger/sufficient by their standards.
Margin is different for stock option and index options.

sir,i m new to this group pls guide me what is naked writing calls means is ?????
Is the call is being sold at any price or ?????

I have also faced the same problem with Sharekhan. When called their support they said why don't you buy a put instead. How foolish.

Seems if our portfolio is more than 3 lakhs they allow writing. Their brokerage for options are very high. Planning to shift to RKGlobal.

Experts,

Last time I am trying my luck to see whether I get any response:

If I want to try complex strategy like iron condor, or spreads, is there any broker that charges me the maximum risk of the trade?

I am with ICICI direct. If I buy a call and sell a call at higher strike, they don't even consider my bought call and charge maximum risk (in this case difference between strike of bought and sold call) and charge me only that margin.

They treat bought and sold call independently and charge very high margin for the sold call. To give you number, they are charging me Rs.1,97,000/- margin for 40 strike call that I sold for 45 paise. Even their own calculator shows different number than this.

Greatly appreciate if you can guide me to a broker who charges only spread margins in India.

Thanks a ton,

Appreciate a quick response.