Comment on STT Trap - Options Expiry - NSE BSE MCX-SX
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 ?
Thanks.