Comment on Basics on Options Shorting/Writing

MK commented on 10 Jun 2016, 03:11 PM

Hi Nitin,

Nice post, well explained in a nice way for novoice trader as well.

Question : – 1) – for arbitrage orders and covered calls or put with spreads. will it count as each order separate margin or exchange can recognize these as covered items( in order to block as less margin as possible)
2) – what possible way to block margins as low as possible – since writing both OTM items, or different calendar periods products can lead to minimal risk so as minimal profit. but will the margin be discounted or it will be blocked in full.
3) – guide for lowest margin block for option writing.

Best Regards

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