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. 05-21-2017 05:39 PM
    Ankitshah

    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.

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  2. 04-10-2018 10:55 AM
    pmahesh84
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    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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