Why cannot" I buy to close " a sell put( uncovered/ naked ) immediately ?

#1
Can I sell calls and puts in Daytrading/Intraday with margin from my broker ? I know the position gets squared off - what happens then - do I get to keep my premium ?
After I write a call /put , how can I exit before expiry - if yes , how soon ?

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:D Please help me understand the basics... ametaur here:D
 
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ananths

Well-Known Member
#2
Can I sell calls and puts in Daytrading/Intraday with margin from my broker ? I know the position gets squared off - what happens then - do I get to keep my premium ?
After I write a call /put , how can I exit before expiry - if yes , how soon ?

___________________________________________
:D Please help me understand the basics... ametaur here:D
I really could not understand what is your doubt.

You can sell/buy puts/calls intraday. What you are not able to understand in this?
If you are thinking you need margin for options, think it this way, options are already a leveraged position. So what else you need?

After you write call/put, how can you exit before expiry? just buy them back any day.

Edit- Understand basics before trading options. All the best
 
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