Comment on Basics on Options Shorting/Writing

NNVPratap commented on 19 Dec 2016, 10:17 AM

Hi, have a few queries, please support.
1. If we write an option, should we square off that position before expiry? If that is the case and we forget to do so, any penalty is imposed?
2. When is the premium for option shorting credited to the trading account? On the day of expiry or immediately?
3. If due to market movement, there is an increased requirement for margin, how will the trader be communicated about that and how much time do we have to add funds for the new requirement?

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