In-the-money Options trade.

[SavantGarde]

Re: MtoM for Options

There is No MTM or Margin Requirement for Buy Position...Your Loss is limited to the extent of the Premium paid for Buying....!!!

SG

Thanks for such a great explanation. Does this apply for Buy position?

 

[ppandya]

If I dont square off my position till expiry date of Options Trade and Option Trade becomes in-the-money, then is there a way where I cannot exercise by buy position?

 

[SavantGarde]

Do Not Start A New Thread for Every Query...... !!!

Forum is already littered with Multiple Threads for small queries... either search for answers which already exist or Keep Your Queries organised in a Single thread.

SG

 

[ppandya]

Sure.....I tried search for in-the money but couldnt get any post so start a new thread....

Do Not Start A New Thread for Every Query...... !!!

Forum is already littered with Multiple Threads for small queries... either search for answers which already exist or Keep Your Queries organised in a Single thread.

SG

 

[supaTrade]

Re: MtoM for Options

Hi SG,

Are option settled for hedged options too. eg. A bull spread, will I get credit for the long position when calculating m2m margin?

There is No MTM or Margin Requirement for Buy Position...Your Loss is limited to the extent of the Premium paid for Buying....!!!

SG

 

[anup0212]

HI Ppandya,

if you are not exercising your option position then it ends worthless and so far as i know all those options goes to eexchange and exchange reserves the righ to excercise it or not ? ...

thanks,
anup