Premium credit in trading account

muthu1984 · January 3, 2018, 5:18pm

Let’s say if i am writing a put option, when will the premium amount credited. Immediately after my write order executed?

Spaceship · January 3, 2018, 5:19pm

Yes !

muthu1984 · January 3, 2018, 5:21pm

One more follow up question, if my put write option expired OTM, that is i am not squaring off, still the premium remains in our account?

Spaceship · January 3, 2018, 5:22pm

Yes entire premium is yours.

muthu1984 · January 3, 2018, 5:23pm

Thank you very much @Spaceship

Spaceship · January 3, 2018, 5:23pm

You are welcome!