Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 15 Nov 2015, 02:15 PM

Yes & No. Margin required to short depends on risk, and risk increases as and when an option becomes ITM from OTM for a writer. Assume that the market keeps going up and ur call option is ITM. Now, the margin increase for shorting calls will be much higher than the margin reduction for put option.

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