Comment on Basics on Options Shorting/Writing

Kashyap commented on 04 Nov 2016, 09:06 PM

Hi Sir,
The post is awesome.
I am going to write ATM call + put at the start of month and hold till expiry. The premium ofcaurse will be melted to some extent and i am able to get some profits say near about 6-10%.

Now let say i have written call+put at total of 300 and suppose if it goes above 300 then
Do i have to pay more premium?
If yes then how much it will be?
Do my broker will square off the position without asking?
If the total goes down lets say 200 then what about the extra margin amount that i have paid?

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