Comment on Basics on Options Shorting/Writing

Ankit commented on 03 Jan 2017, 01:10 AM

Thanks for the quick reply.
For Q3, I meant to ask – If I write an option (assuming enough shares+cash margin available), since option writing entails me getting the premium, how soon is this extra fund available for me to withdraw?

Eg. I write an option with lot size 75 for Rs. 100. This requires SPAN + Exposure margin of Rs 50,000 (And I have 25k in cash and 25k in share collateral after hair cut). So the premium amt – Rs 7500 should be credited in my account right?
How soon can I withdraw this? i.e T+0 or T+1 or only after I close the position or it expires out of the money?

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