“Fresh long option positions will not be allowed on Wednesday and Thursday of the expiry week”
What if I already have a short position (which is ITM) in the same underlying and the purpose of the fresh long (also ITM, but at a different strike price) is only to net off against the short? There is no fresh delivery obligation created, infact, the existing delivery obligation (short) is only being netted off. Will such a long position be allowed on Wed and Thu of the expiry week?
Am I allowed to enter into a short future contract on a stock during the two days of expiry (Wed and Thu of expiry week) despite the applicability of compulsory physical settlement?
Since the short future contract would net off against the existing short ITM PE, it will not lead to a fresh physical delivery obligation, but infact net off the existing one. Will the margin still be twice the normal margins on Wed and Thu of the expiry week?
Just checking again on the earlier question raised (although theoretical): Ideally a fresh long ITM PE that nets off an existing short ITM PE does not create a new delivery obligation, but nets off an existing one. Is it still disallowed on Wed and Thu of the expiry week? Will additional physical delivery margins still apply on such as netting off position?