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1. Anil Khatri   I Like It. |Report Abuse|  Link|July 12, 2021 9:40:13 AMReply
For Covered call, I need to understand the following
1) Do we need to pledge the shares of the underline to get margin benefit?
2) With new Sebi rules on Margin, even after pledging - we need to keep 50% cash as margin for covered call - am I Right?
3) To unpledge the shares on Zerodha, it take T+1, so on Expiry, if the Strike in on ITM, how can you give Delivery as shares would be Pledged. If we don't Pledge, then full margin has to be given, then the return on investment with margin being blocked, will be very less.
Please help me understand this better, thanks

1.1. B S Rana   I Like It. |Report Abuse|  Link|July 23, 2021 8:51:01 AM
I am also seeking answer to these queries, .I think it is prudent to square of the position well before the expiry. Only 50% margin requirement is allowed out of pledged shares. 50% has` carrying overnight position. Zerodha increases margin from Wednesday of week of expiry. So winding up before that is wise.