Comment on Basics on Options Shorting/Writing

Kaushik commented on 15 Nov 2015, 10:58 AM

Hi Nithin,

Thanks for the nice article. I have a query though, let me see if I can explain my question!

Let’s say I short Nifty OTM call and put together and the margin required is 50K (for ex) for both the shorting.
Next day Nifty rises by 50 points, hence the margin requirement for my call shorting also increases, at the same time the margin requirement for the put short reduces.

Does that mean that, at any point of time the margin requirement remains constant if I short a call and put together?

Please correct me if I am wrong.

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