How Daily MTM in options writing works?

  • Margins will go up, but  in case of option writing, the margin increase happens gradually. 
  • Yes, you should be able to, unless there is a big market move against you. The margin required shown on SPAN calculator is not live, so it can be off between 5 to 10% from the actual margin requirement. 
  • Like I said, the margin increases gradually and it has got nothing to do with if the option is in the money or not.
  • Yes, on T+1 day this money gets added to your trading account and can be withdrawn. 
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