Query w.r.t. Margin in Calendar Spread

[Meher_Smaran]

Hi @paekut

@paekut

will the margin requirement increase from 30,000?

The margin requirement will increase to the extent of the MTM loss in the short option leg

We’ve discussed this in detail in the thread below.

MTM Margin calculations in options spreads

@Stonecold 1.) Margins will keep on increasing in case of ‘Bull Put Spread’ going deep ITM. As long as the position is hedged, margin increment will not have any impact on your position. 2.) But the positions will not be squared off, No position won’t be squared off until the hedge position is maintained. 3.) But we will have to face short margin penalty because M2M loss of short option will be considered but M2M profit of Long Option will not be considered. Options Mtom will not be part o…