If I short 8600 PE Dec Expiry, when my whole Blocking amount will become zero?
as you know , you write 8600 PE of dec expiry , your loss or profit also depends upon dec expiry, if nifty closses above 8600 on dec expiry , you will loose money but take some factors into account such as time decay and whole blocked amount will become zero if you does not have strategy to get out of that , as vinay i earlier told you that option writing is very good and earn you good profit if you have good strategy and laid down your strategy before the start of month and remain always out of money options { look for bank nifty trade also that must also be of out of money options because in bank nifty out of money option , premium is much higher than nifty } but please do not just go only by my strategy
The whole Blocking Amount (Margin) never becomes zero. Usually when the margin amount goes lower than your Span Margin, broker squares off your position in loss and returns you the money blocked under Span margin. Only your exposure margin gets lost.
Even if you make up additional money in your account to avoid broker squaring off your positions, still your account never becomes zero, but tends to move in that direction.
At some point of time
- either the broker squares it off
- or expiry reaches