Comment on Basics on Options Shorting/Writing

VIKAS SHARMA commented on 10 Jan 2017, 06:07 AM

I have one question on writing NIFTY option
In 2009 , when Manmohan govt came back in power again, nifty rose 20%(From 3673 to 4384) in first 6 minutes of trading session. Few call buy option, rose beyond 1000%.

Suppose Had I SOLD/WRITTEN call option, lets say 3700 CE, i would have made huge loss. Basically what i want to know, RMS team would have squared off my position????? And if yes then when. And what if loss occurred is more than the margin blocked. Is that possible?

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