Comment on STT Trap - Options Expiry - NSE BSE MCX-SX
commented on
14 Sep 2015, 04:27 PM
1. Unlike futures MTM is not directly proportional to your losses. When you short options, the margin blocked goes up if the position goes against you. There is no direct math, you can check our span calculator daily to get a hang of this. https://zerodha.com/margin-calculator/SPAN/
2. Yes on expiry if there is a net loss, the shares will be sold. So it is best to keep some cash as buffer.