Naked option selling margin on Zerodha

Wed, 20 May 2026 00:00:00 +0000

A naked (unhedged) short option position on Zerodha requires the full SPAN + Exposure margin, with no hedge benefit. This makes naked option selling capital-intensive but is the standard structure for many premium-collection strategies.

What “naked” means

A short option position with no offsetting hedge:

Short call with no long call hedge.
Short put with no long put hedge.
Selling either side of a strangle without protective wings.

The seller’s loss is theoretically unlimited (for short calls) or substantial (for short puts).

Naked Option on WebNotes

Naked option selling margin on Zerodha

What “naked” means