Comment on Margins- 2 Exit orders for 1 position

Varun commented on 16 Dec 2016, 12:58 PM

If I am only an options buyer and never indulge in options writing then will I be able to take advantage. Lets say after deciding to exit a long call option I develop a bearish view on NIFTY and decide to buy put options at the exact time when I decide to cover my long calls will I be able to do so – I mean in terms of allowing me to ‘place an order’ to buy a put exactly at the same time of squaring off my long calls with insufficient capital for buying the puts (the strike price would differ obviously). Timing is the key issue here if I am using an algorithm that is constantly at work with reverse trades.

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