Sell PE vs Buy CE β€” Which is better when I want the stock at a lower price?

Sell PE vs Buy CE β€” Which is better when I want the stock at a lower price?

If I want to sell a PE (Put Option) or buy a CE (Call Option ) on a stock. I have a few questions about margin:

  1. How much margin is required to sell/write a PE before expiry?
  2. Does the margin requirement change as expiry approaches?
  3. If the stock moves against me (falls), does the margin increase automatically?
  4. What happens if I don’t have enough margin β€” will the broker auto-square off my position?

Read here.

I want to know this from experts.
@Hardik @Tradehull_Imran sir

Well I am not an expert but I can guide you

  1. For selling a put option 1 lot of nifty 50 stock is around 1.2 lacs more in case of volatility
  2. yes margin requirement changes as it approaches near expiry to fulfill obligations and rights
  3. yes since you have sold put option stock can fall sharply RMS increases margin for better risk management
  4. Yes broker can close your position at anytime to manage risk mentioned in their policy.