Unlike futures, I see that mark to market value is not calculated for options. So, don’t I need to park anything in cash for mark to market in overnight position in options?
Is the profit/loss calculated only when I square off the positions?
Right, profit/loss calculation for Options will happen only once you square-off your position.
However, for Short Option positions, if the position is running in losses, your margin requirement will increase, to ensure there isn’t margin shortfall, you need to always maintain sufficient SPAN + Exposure margin.
SPAN+Exposure can come from Collateral (50% Liquid + 50% Equity). Correct? How ‘Available cash’ plays any role here? Yesterday, my Available cash amount was +ve and I used it in Coin to buy MFs; today, I squared off many short option positions. And I observed my ‘Available Cash’ is now -ve, even though my available margin(and cash equivalent) is still way high. Please explain or direct me to a relevant article. Thanks for your help.