Does Selling call or Put is calculated as per Mark to Market Profit Loss, Please tell
Options - Does Selling call or Put is calculated as per Mark to Market Profit Loss, Please tell in Derivatives - I want to know if I sell a call at 23 with Lot of 75 which gives me a credit ...
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Does Selling call or Put is calculated as per Mark to Market Profit Loss, Please tell

  1. Post Does Selling call or Put is calculated as per Mark to Market Profit Loss, Please tell

    I want to know if I sell a call at 23 with Lot of 75 which gives me a credit of Premium 1725 and before delivery, on one day the price reaches 30 , the difference between 23-30 = 7* 75 = -525 is paid by me , however by expiry if the price reaches 2 Rs and i Square off that time. Then Ideally i should have a total profit of 1575 and MTM should credit back my loss.

    Please advise if my understanding is correct.

    Thanks and Regards,
    Ankit.








  2. Future settlements are done M2M. For options, if you are a seller, margin amount is blocked initially and if you wait till expiry and square off at low price, you can keep the net of premium.

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