Query regarding using funds received from option writing

General
1

@VenuMadhav @siva @nithin
when an option writer sells an option, he receives premium. can this premium be used immidiately or the next day for buying another options?
thank you.

2

You can use the funds to buy options the same day, however please note that since you are using unrealized credit (actual credit settlement happens on T+1), you can be charged a margin penalty from the Exchange.

1 Like
3

Thanks for your reply.
If i maintain margins then there is no problem, right?

4

@siva @ShubhS9 Can i use the option premium to short more position next day?

5

Yes, from next day onwards you can use the premium received wherever you want.