If I sell stock option and buyback same stock option for intraday profit do I need cash in my account to buybacl?

Let’s say I don’t have free cash in my account.
I only have margin from pledged shares and cash equivalent - so if I use that margin to sell option and buyback when option price go lower (so for profit) intraday

Will that be penalty or any kind i.e. margin penalty or similar?

Remember - I don’t have cash to buyback option I have sold. @ShubhS9

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There won’t be any penalty. When you buy back the option, the premium recieved will be deducted from your account and the difference between your selling price and buy price will be your P&L.

Also, would suggest you keep some cash balance in you account to cover for losses and charges. These cannot be paid from the collateral margin and will result in your account going into debit balance, which will attract interest of 0.05% per day.

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