@ShubhS9 I had posted a similar question earlier. I understand that a Naked short option will have an increased margin requirement. The confusion is when the positions are hedged.
Given the case,
- Will there be an increase in margin requirement in the last week of expiry?
- If the option becomes ITM, since it’s hedged on both sides, this will be considered as a “net-off” and would’nt require physical delivery?
- If the additional margins are not brought in, will there be a peak margin penalty or will there be a margin shortfall ( interest payable to zerodha)?