Comment on The Option Greeks (Delta) Part 1

Karthik Rangappa commented on 01 Jul 2015, 06:19 AM

When you buy an option you pay the full premium required and not really margins. You pay margins when you short option.

1) When you buy options and hold it till expiry then on the expiry day whatever profits you are entitled will be credited to your trading account.
2) When you short options and hold it till expiry then on the expiry day whatever profits you are entitled will be credited to your trading account. However STT on short option positions is quite high, so its advisable to close the trade yourself and not hold till expiry.

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