Hi all,
i am trading for while,
have got issue can anyone guide me on this issue.
i have sold nifty 25000ce on dec series of 2024 for 140rs,
now premium increase to 565rs, almost 4 times.
i have get mail for margin call.
what shall i do any tips…/
when will required margin will reduces, now ard 2.05lakhs/ lot to sell…/
If you are convinced that nifty won’t cross 25k by dec, fund your MTM losses by bringing in extra cash or hedge this by buying some nifty OTM calls
Is the quantity huge?
ard 70% confident that 25k CE is still long way for 10months ,
but now ard 70k MTM loss (4 lots),
not much option to bring extra cash, if hedge with 27k CE will need more cash ard 170rs/ lot(8.5k),
26k ard 320/lot(16k).
need to know when will margin amount come down…/
now 2lakhs/lot margin money…/
If you have already got the margin call, you may have to add funds. The broker may be compelled to square off the position if the funds are not added. Talk to their customer care or raise a support ticket for clarity.
For CE premiums to fall Nifty50 (underlying) has to drop or stay flat for a while.
Hi, arrange money for 30 days, if the contract is less than 9 months, the margin will drop significantly
Or just exit 1 lot for now and then add back after march
Fill in the MTM margin. By the way , I’m curious to know what made you sell such deep OTM call ?
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It probably appeared safe and easy money to the eyes
I have done something similar in my starting years too, the dec options move too much, often beyond our comprehension due to the time left
Most people follow this because no worries of gapup and gap downs, some people do calendar spread by buying long term option and selling monthly contract.