Comment on Basics on Options Shorting/Writing

vishvanath commented on 06 May 2016, 08:21 AM

Hi Nithin,

I have a question regarding option margin. If I have sold NIFTY-MAY-7700-PE at Rs 100 and If nifty decreases suddenly and price of NIFTY-MAY-7700-PE increases to Rs. 200 or even more, will my position gets squared-off automatically? , provided the amount in my trading account is equal to the margin required when the price of the option was Rs.100.

Though I would be in loss now, assume that on the day of expiry nifty will be above 7700 and I will be under profit.

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