Comment on Basics on Options Shorting/Writing

Prateek commented on 04 Sep 2015, 04:08 PM

Hi,
Consider below example – expiry date 24/09
On 01/09 – I write call 8500 CE Nifty @ 50 quantity – 100
Because of some reason market moves high very fast, let say
On 10/09 Nifty at 8700 and 8500 CE value is 300.
In the above case, I’ll be in heavy loss on 10/09 till but long way to go for expiry
My question – is there any possibility to square off my position automatically due to heavy loss on that day.

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