Can option seller(writer) suqare off position before expiry?position is loss or profit?

Say if suppose i sold putsy position makes losses can i square off the position before the expiry




Okay so what is the advantage if i hold til expiry or it is better to square off before expiry?how profitability differs?

You won’t have any STT liability while squaring it off since you were a seller who had already paid that so from that angle it makes no difference. Only thing is that if you see good profit before expiry then why to wait and later see things reverse, better to book profits unless the probability of profits reducing is almost nil.

1 Like