Discuss Make money by writing call & put options at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; i think option trading is the best way to really gain from the markets...
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I have been a member of this forum since a year now but posting for the first time!
I have a query with regards to shorting (Writing) options:
My question is that: How does the margin to be deducted/added get calculated after every trading session?
If I write a single Nifty Put (European) at a strike of 4400 for 10(today when Nifty Spot is 4700 plus). I understand I will get Rs.500-brokerage on T+1 day. But if Nifty falls to 4600 tomorrow then the premium for my Put goes to Rs.13. So will my margin payout for tomorrow be Rs. 3 (13-10) * 50(Single lot) * margin percentage or Will it be Rs. 100 (4700-4600) * 50(Single lot) * margin percentage?
I have bought some options and created long strangles to profit a bit. But I would like to venture into selling options too. Lack of clarity on the above query is not allowing me to do so. I hope the query is clear and that one of you gentlemen/ladies will help me out with it.
Thanks a lot for all the information you all have provided as of now!
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20th September 2007, 08:27 PM
Re: Make money by writing call & put options
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i think option trading is the best way to really gain from the markets
