Directional with specific target (Bullish for Call Seagull, Bearish for Put Seagull)
| Strategy Type | Directional - Funded Vertical Spread |
| Market Outlook | Directional with specific target (Bullish for Call Seagull, Bearish for Put Seagull) |
| Risk Profile | Limited on spread side, UNLIMITED/Substantial on funding leg side |
| Reward Profile | Maximum at spread's short strike, Credit or Zero-Cost Entry |
| Time Horizon | 21-35 days optimal |
| Capital Requirement | Zero or small debit entry, funding leg margin Rs.40,000-60,000 |
| Best Used When | Directional view with clear support/resistance for funding leg, want capital-efficient exposure, elevated IV for rich funding leg premium |
| Trading Hours | 9:15 AM - 3:30 PM IST |
| Weekly Expiry | Thursday (NIFTY, BANKNIFTY, FINNIFTY) |
| Monthly Expiry | Last Thursday of the month |
| Type | SPAN + Exposure Margin |
| Spread Benefit | Reduced margin due to defined risk structure |
| Typical Margin Range | ₹25,000 - ₹50,000 per lot for index options |
| Margin Calculator | Use NSE SPAN calculator for exact requirements |
| Stt On Premium | 0.05% on sell side (options) |
| Stt On Exercise | 0.125% on intrinsic value if ITM at expiry |
| Income Classification | Business income for frequent traders |
| Gst On Brokerage | 18% on brokerage charges |
| Best Instruments | NIFTY and BANKNIFTY options |
| Optimal Strikes | ATM and near OTM strikes for best liquidity |
| Bid Ask Spread | Expect 1-3 points spread on liquid index options |
| Execution Tip | Use limit orders, execute during high volume periods |
| Typical Seagull Cost | Zero cost to small debit/credit depending on strikes |
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