What is marginal eligibility for option shorting.

[milind.wakale]

Hello pals,

I am new to option trading, and I have traded few option doing long trades. I want to use option strategies for doing some trades.

For doing so, I need to know what is marginal eligibility, that I should have in my account. I means that, if I have to short options of, for example put option of, ADANIENT having lot size of 6000 at strike price Rs. 70, how much minimum amount of money should I have in my account to do that trade. Doing this I am going to obligate 70*6000 = Rs. 4,20,000 of purchase of the stock, so I guess I need to have some percentage of amount in my account. How much is that?

Please guide me. Thanking you.

 

[tradedatrend]

check future margin of such scrip

option shorting requires same as future margin

in case you choose to hedge your short options, then margin can be less

just google 'zerodha margin calculator' and fill the detail of scrip i.e. strike price and expiry etc, you will get complete detail, almost every broker follow the same rule for margin