Hi all, I have recently started trading options. just wanted to clear certain doubts on margin / funds requirement when buying options (call or put) and release of margin / funds back to the account upon exiting the position.
say, I have bought call option on Stock A at X strike price at Rs.10 premium / per shares (lots assumed 1500 shares), so margin / funds requirement inititally would be Rs.15000 (1500 X10), and when I exit the position say at 11 premium per share, I would receive back margin / funds of Rs. 16500 (1500X11) to my account, am I right ? (for simple calculation ignoring exchange charges and brokerage etc.)
this method / calculation applies to buying call options / put options on stocks as well as nifty/banknifty also, right ?
please correct me and help with correct calculation if I am wrong…
please help. thanks.