Query regarding using funds received from option writing

@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.

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

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

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

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