Margin:Short Strangle

#1
Recently with the help of this site and other sources I've tried to learn option strategies....
now i am struck in problem regarding margin required while selling options

Suppose:

Nifty is @ 4997
if i short 4800 put @ 70 and 5400 call @ 20.5 both expiring on 26 November

now for ^^^ this icici direct charges flat 35k for each short lot of nifty cal/put,and thats make my investment around 65.5k(70k-the premium received)

is there any company which requires less margin for this??????:thumb:
 

aditya14

Well-Known Member
#3
Recently with the help of this site and other sources I've tried to learn option strategies....
now i am struck in problem regarding margin required while selling options

Suppose:

Nifty is @ 4997
if i short 4800 put @ 70 and 5400 call @ 20.5 both expiring on 26 November

now for ^^^ this icici direct charges flat 35k for each short lot of nifty cal/put,and thats make my investment around 65.5k(70k-the premium received)

is there any company which requires less margin for this??????:thumb:
Iam an ICICI customer and let me tell you they charge less than what gets told by their staff on phone line.Here is what i do so that i dont get overcharged(if u have more money in account they will take more as margin) and increase your autotrigger.What i do is keep for eg. 22k in my account then send the sell order.

Your positions would require around 40-50k at most.
 
#4
what i am trying to do here is getting more %age return out of my investment by reducing the investment amount.

i've heard that RK Global charges very less this for this??

anyone?
 

columbus

Well-Known Member
#5
what i am trying to do here is getting more %age return out of my investment by reducing the investment amount.

i've heard that RK Global charges very less this for this??

anyone?
On brokerage alone many are charging from 30-75/- per lot,
RKG is charging 9/-per lot.
 
#7
Recently with the help of this site and other sources I've tried to learn option strategies....
now i am struck in problem regarding margin required while selling options

Suppose:

Nifty is @ 4997
if i short 4800 put @ 70 and 5400 call @ 20.5 both expiring on 26 November

now for ^^^ this icici direct charges flat 35k for each short lot of nifty cal/put,and thats make my investment around 65.5k(70k-the premium received)

is there any company which requires less margin for this??????:thumb:
Hi RRR.

How many contracts are you talking about and wot is the total amount of premiums recieved. They cant charge you 75K on just 2 contracts surely when both legs are OTM?:confused:

John
 
#8
Hi RRR.

How many contracts are you talking about and wot is the total amount of premiums received. They cant charge you 75K on just 2 contracts surely when both legs are OTM?:confused:

John


OTM call lot: 1
OTM Put lot: 1

simply 2 OTM contracts

premium received: 4525

so in this way i am earning 4525 on my 70k that's not so cool? 6.5% monthly return,thatif nifty stay's in that range
 
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