Margin applicable for option cover sell order will be computed using below formula:

Quantity * [(Strike Price + Premium) * Margin % + (Limit price of Option Buy Order – Average Traded Price (Premium))]

eg: Margin Charged = 75*[((11300+120)*1%) + (190-120)] = Rs 13815

Where;

Qty= 1 Lot (75 Quantity)

Strike Price=11300

Average Trade Price =120 (Premium)

Limit Price of Option Buy Order=190

Margin % = 1 % (Actual margin % may vary from1% as considered in this example)