Cover Order for Options

Can we use CO for options writing? From what Nitin says here - " can use cover orders for writing options and you will get the margin benefit. The only issue with using cover orders for option writing is that the SL range is 1.5%. so for eg if you write an option at Rs 50, you have to put a SL within the range of 50 to 51.5 which is a pretty narrow range for option trading.".

This was in 2012. Has the scenario changed now? What is the SL range now? Especially for NIFTY and BANKNIFTY options.

Ramakrishnan S
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