If sold call and put options get assigned, can buying power from one offset the other?

F&O
1

Hello,

I have sold a call option and a put option (on 2 different stocks). The underlying value of both is about 5 Lakhs.

At expiration, if both get assigned, I will end up selling stock worth 5Lakhs and buying stock worth 5Lakhs.

In this situation, will I need to put up extra money for the stock that I end up buying, or will the proceeds from selling one stock be used to buy the other stock?

Thanks!

2

Yes, you will have to bring in additional margins. These are two different naked positions and will not hedge each other.

3

ok, thanks, @Sharaths4, for your response.