Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 19 Dec 2016, 11:34 AM

1. Not required to square off, on expiry all options are settled to the underlying price and any p&L is credited/debited. If you have short options, no additional STT (penalty) to be worried of.
2. Immediately (T+1 day)
3. Trader has to keep a track of this, it is best to have all MTM losses in case it is big (more than 10% of margin) transferred into trading account before market closing.

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