Selling or writing a put option at 9700

General
1

What are the consequences on 25 oct 2018 if i write or sell put @ 9700 with premium of 9 rs.

2

I can think of two possiblities

  1. if index closes below 9691(rare case but not impossible), at 25th oct, your position will be in loss and broker will release the blocked margin - loss amount

  2. if it closes above 9700, broker will release the margin blocked for option writing. You will retain the premium received during option writing i.e. 675 rs per lot

I dont think there will be any other consequences because 9700 put is OTM contract so it will not be exercised. Also you are writing index options so additional margin may not be required. This may not be the case if you are writing stock options

3

If index closes above 9700 you get to keep the premium of 9 rs. Your profit is limited to 8.95 where as your loss is unlimited. If for example index closes at 9600 on 25 Oct you would have to pay 91 rs loss. That is 100-9. In this case you will be loosing 10 times of what you will be getting if u are right