Comment on Basics on Options Shorting/Writing

Kaushik commented on 17 Nov 2015, 10:33 PM

Thanks a lot Nithin for the prompt reply, as always!

One more query that I had is, the margin that is calculated for shorting, is it for a certain range of the underlying product or is it calculated every day after the close of the market?

For example, if I short 2 lots of Nifty 8000 call and say the margin blocked is around 1Lac, will this margin be valid/not change for a range of nifty movement (say 7900 to 8100) or will the margin be re-calculated every night depending on the price movement of the nifty? Reduce if Nifty decreases or increase if Nifty increases.

I don’t know know if I was able to explain it well!

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