Options on WebNotes

How to trade options on Kite (first time)

Tue, 12 May 2026 00:00:00 +0000

This guide covers placing an options trade on Kite for the first time. Options are contracts that give the buyer the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a specified price (the strike) on or before the expiry date. On the NSE, all equity index and stock options are European-style, meaning they can only be exercised at expiry, not before.

For strategy construction and payoff analysis, see How to build an options strategy on Sensibull and How to use options payoff charts. For the margin framework, see How to calculate margin using the SPAN calculator.

How to use collateral margin for F&O on Zerodha

Tue, 12 May 2026 00:00:00 +0000

After pledging securities and generating collateral margin on Zerodha, the collateral margin is ready for use in futures and options positions without any additional configuration. Kite automatically draws from the combined pool of cash and collateral when you place F&O orders. The critical constraint is SEBI’s rule that at least 50% of the total margin requirement must be in cash or cash equivalents. Understanding how to track and manage this split is the primary skill required to trade F&O on collateral efficiently.

F&O segment on Zerodha

Mon, 11 May 2026 00:00:00 +0000

The Futures and Options (F&O) segment on Zerodha covers exchange-traded equity derivatives on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This segment includes index futures, index options, stock futures, and stock options on SEBI-approved underlying securities. Zerodha is among India’s largest F&O brokers by volume, with the segment accounting for a substantial share of its brokerage revenue despite the flat-fee model.

All F&O contracts in India are cash-settled, meaning no physical delivery of shares occurs except in the case of stock futures and stock options contracts in their expiry month, which were mandatorily moved to physical settlement by SEBI in a phased manner beginning in 2018.

Zerodha Varsity (financial education portal)

Mon, 11 May 2026 00:00:00 +0000

Zerodha Varsity is a free financial literacy and trading education portal operated by Zerodha, accessible at varsity.zerodha.com. Varsity offers structured learning modules on stock markets, equity investing, technical analysis, fundamental analysis, futures and options trading, commodity and currency derivatives, personal finance, and trading psychology. The content is written for Indian retail investors and traders, using examples from NSE and BSE instruments within the regulatory context of SEBI, and is available without charge and without a mandatory Zerodha account.