FAQ’s – Frequently Asked Questions on OptionPlus

This is a compilation of the frequently asked questions on the OptionPlus – Margin Trading for Equity Delivery.

Introduction to Option Plus

Samco introduces in its Plus series of products, the first of its kind, a leverage product for IntraDay trading in Options, both for buying and selling options.
It is available on both the indices Nifty50 and NiftyBank and other highly liquid stocks in Near month/weekly expiry, however as the expiry nears, OptionPlus will be available for Next month/weekly series also. Volumes and Liquidity will be important criteria for the inclusion of contracts for trading in OptionPlus, which shall be decided by Samco Securities ltd from time to time.
It is available for both monthly and weekly expiries.
Most contracts with high liquidity will be available for trading in OptionPlus
No. Currently it is available for only actively traded Stocks and Indices but not for Commodities and Currencies.
Existing client having Samco account who have active derivative segment can avail the services after subscribing to OptionPlus product.

Benefits of OptionPlus

With OptionPlus, you get up to 3X leverage for buying options & up to 20X leverage for selling options. OptionPlus enables you to acquire the power of leveraged trading in options by allowing you to grab intraday opportunities at much lower margins. Thus you get to trade more lots of options positions with the cash available in your trading account. No other brokers, discount or traditional, give such a structured product.
There will be NO extra brokerage charged. Usual discount brokerage will be applicable as per SAMCO’s terms and conditions.
Yes. OptionPlus allows you to trade on the last day of expiry. However other brokers do not allow such expiry day leveraged trading in Options to their clients.
With OptionPlus, you can trade in both NSE stocks & indices in the Options segment using the Cover Order (CO) & Bracket Order (BO) product types, which are the Intraday products, while trading with SAMCO.

Those who trade heavily in intraday options, it is beneficial for them. Firstly you can get to buy or sell more options on the same amount of capital and secondly the brokerage cost per order Rs 20 remains the same, which will effectively reduce the costs further as more contracts are traded per order.

For example: Say you have Rs. 20,000 as cash in your trading account & wish to Buy a long position (Call) in Nifty Options at the strike price of 11,000 (when the spot Nifty is trading at 10,900), and if the premium you pay on that particular strike at that moment is Rs. 10, you will need Rs. 750 to purchase 1 lot (since the minimum lot size of Nifty is 75). Thus, with Rs. 20000 in your trading account, you procure 26 lots or 1950 quantities of the Nifty option.

But with the OptionPlus product, with the same Rs. 20,000, you get 43 lots or 3225 quantities of Nifty’s 11000 Strike Call, in this example, you end up paying less than half the margin required and thus are able to trade more lots of options.

The same holds true for selling option positions. If you wish to open a short position in the same Nifty strike of 11000, the margin you pay on 1 lot is Rs. 1,17,796 (without OptionPlus). Thus robbing you of the opportunity to get lots with your Rs. 20,000 cash balance. But with the leverage given by the OptionPlus product, you can open a short position with just Rs. 15,689 in the margin amount. Your Rs. 20,000 cash balance is more than enough to trade in this case.

Likewise, you can trade intraday in the options in liquid stocks of your choice.

The open positions in OptionPlus will, as far as possible, be squared off after 3.15 PM.

Extent of Leverage available

With OptionPlus you can get upto 20 times leverage on selling options which is nowhere available in the industry. However for buying options you can get upto 3 times leverage.
You can check your leverage on the option contracts here

Subscription and Pricing

All SAMCO clients can subscribe to this facility from SAMCO STAR after agreeing to the Terms & Conditions of the product.
You may either pay an annual subscription fee of Rs. 999+ 18% GST in order to sign up for the OptionPlus facility, or you can choose to pay the monthly installment of Rs. 149+ 18% GST for the same facility. This payment can be made from the SAMCO STAR.
No, the subscription will not be auto renewed, the client will have to pay every time the subscription expires.

Operational FrameWork of OptionPlus

NRML MIS OptionPlus
Option Buying 1x 1x Up to 3x 33.3% of Premium Value
Option Selling 1x 2x Up to 20x 0.5% of Contract Value

You can Buy option positions with margins as low as 33% compared to what was originally required (without OptionPlus). Eg: If Buying an options position requires a margin of Rs. 10000 under normal conditions, but with SAMCO’s OptionPlus product, you only need to pay Rs. 3300.

Likewise, while selling options, you can trade by paying margins as low as 0.5% of the contract value Eg: If the margin required for a short position in the indices was originally Rs. 1,00,000 you only need to pay Rs. 5000 under OptionPlus.

For option buying, price (premium) * Qty

For option selling, (Strike Price + Premium) * Qty

After activating the OptionPlus product, you must use the Bracket Order (BO) or Cover Order (CO) product type to trade in option indices & stock options.
Orders will be rejected in any of the below-mentioned conditions:

1. In the case of margin shortfalls. For instance, you want to short 1 Lot of Nifty with OptionPlus subscription, the margin amount required is Rs. 16000 but the margin you have in your trading account is Rs. 15000. In this case, the orders will be rejected.

2. In case the Script is not available under the BO & CO product type. For instance, you want to trade in the options of MRF Ltd, but Intraday Leverage is not available for the same. In that case, orders will be rejected. You can view the full list on the Options Leverage Calculator.

No, you cannot convert your Intraday orders (BO or CO) to Carry Forward positions (NRML) in OptionPlus. You need to square-off your open intraday positions, and if you are not able to do before 3.15 pm, our RMS Team, on a best efforts basis, will close the open positions.
Brokerage cash back will be available to new clients in addition he/she may also avail the facility of OptionPlus after subscribing to the same.

Risk Factors

By nature, leverage trading is very risky and entails loss of entire capital, similarly OptionPlus also involves risk of loss of entire capital, however with OptionPlus, profits or losses will further get magnified. Market sometimes faces abnormal volatility due to unexpected events beyond anyone’s control which may lead to losses beyond your capital and for such losses you are solely liable. All other risks associated with securities market are applicable and as prescribed by SEBI/Exchanges from time to time.

Bracket order or Cover order contains StopLoss legs, which sometimes has the possibility that it may not be triggered due to factors like slippage of price, order cancelled by the Exchange due to execution price range restrictions, selftrade prevention check, lack of liquidity, heightened volatility or factors beyond anyone’s control. Therefore it is possible that some times stop-loss leg, which protects from losses, can not be executed resulting into heavy losses, therefore it is advised that you should properly monitor orders to ensure stop loss and/or target (in case of BO) legs are successfully executed and are not rejected or cancelled prematurely. Losses if any will have to be borne by you.

In case for whatsoever reason the orders under OptionPlus product are not executed and by virtue of such non execution results into carryforward/delivery of the open position the consequences of which shall be borne by the Client and he/she will be solely responsible for the losses or obligations including margin penalties levied if any by the Exchange.

Detailed Samco’s RMS policy contains all the types of risks which you are advised to read before subscribing to OptionPlus.

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