Option Premium

R

RiddhiPD

Active Member
#1
#1
If we sell option on intraday basis or keeping in view in short time frame ,can we square off the option position within that time frame or do we have to wait for expiry.

And in case we sale option on intraday/short time frame basis what happens to premium?Suppose if I sale option on Monday and want to square off on Thursday,when premium get deposited to my account?and after square off do we keep the premium ??
How the premium is computed in this scenario???
 
R

ram2010

Well-Known Member
#2
#2
RiddhiPD said:
If we sell option on intraday basis or keeping in view in short time frame ,can we square off the option position within that time frame or do we have to wait for expiry.

And in case we sale option on intraday/short time frame basis what happens to premium?Suppose if I sale option on Monday and want to square off on Thursday,when premium get deposited to my account?and after square off do we keep the premium ??
How the premium is computed in this scenario???
Click to expand...
You can square off your position any time on or before expiry.

premium will be credited instantly.

Your profit/loss== sell price - square-off price.
 
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