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


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?


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

ok, thanks, @Sharaths4, for your response.