Selling CE and PE, Premium?

F&O
1

If I sell CE and PE, when i receive premium my account, can i use this premium till expiry?

2

Yes but two things to note:

  • Option sell credit can be used only to buy options on the same trading day. From next settlement day, it can be used for any other trades. Visit: What changes due to the new upfront margin requirements?

  • When you exit short position or expired in ITM, you pay the premium (intrinsic value) after blocked margin is released.

Stock F&O requires compulsory delivery, in case one of the options expires OTM.

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