Comment on STT Trap - Options Expiry - NSE BSE MCX-SX

Jayesh commented on 14 Sep 2015, 08:47 AM

Thank you for the reply Nithin,

(1) How is day to day MTM handled for the covered call I sold.

eg. I sell the covered call (same number as pledged) for Rs. 30 (30 *250 = 7500) .

The next day the call moves up to Rs. 40 (MTM = 40 *250 = 10,000) . How is this MTM handled ? or is it only adjusted on the last day if I let it expire.

(2) How is the loss on expiry adjusted (if the option moves ITM) – by selling the shares ?


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