The In The Money (ITM) options may result in delivery of shares at expiry. Hence as instructed by the exchange, we have to block extra delivery margin for the In-the-Money (ITM) options, four days prior to expiry day (usually previous Friday to expiry day). To avoid penalty, we start charging delivery margin from the same day. The delivery margin is also applicable to existing positions at the beginning of the day.
Can I do intraday trading in stock options?
When does expiry take place for Nifty, Bank Nifty, Sensex, Bankex, and stock option contracts?
What is the margin blocking percentage during the end-of-expiry week for physical settlement of stock option contracts?
When both cash and collateral margins are available, which one is utilized first? What is the order of utilization?