I took positions in Options for the first time. Fearful of loss more than I was informed. Also cash requirement at settlement. So, I need help. I am using Sensibull.
Here is my trade,
As Call Spread, yesterday: ITC
Buy 29 Jul 2021 210 CE, Price 2.95
Sell 29 Jul 2021 217.5 CE Price 1.05.
Today, ITC Again
Buy 26 Aug 2021 210 CE Price 6.1
A. Is this 1st trade also require cash on the Expiry Day? Do I need to buy or provide? How many shares do I need to buy or provide?
B. Do I need to buy stocks in the 2nd Trade if I stay at the end of Expiry Day? How many?
C. Loss was limited as said by Sensibull. Is that money loss 100% sure? or there can be a case where my loss would be more?
Recently, I felt I understood something of Options. So, I decided to enter the water to know more about it.
Sensibull warns me of liquidity issues far away expiry in the big counter ITC. I was looking to buy for SEPT expiry but Sensibull said there is nothing. It was blank. If there was some and I could take entry then what is the chance of liquidity coming to Options expiry?
I got this and after that, I am concerned about cash. I deploy all my cash in stocks. BUT, I do not have ITC stocks in my demant.