@siva Sorry to ask the same question which has been answered before. But this particular case is not clarified anywhere.
Last week of the expiry, are we allowed to short OTM CE in stock options? Naked short?
Like
1x ATM CE BUY << This can become ITM in a 1-2 days!
2x OTM CE SHORT ? << one is naked … last week
^^ or if the above is not allowed.
Can we do a simple bull call spread in stock options in the last week?
Margin for Short Option position will increase only on expiry day to 40% of the contract value or SPAN + Exposure margin (whichever is higher).
If you’re holding Long Options, then the margin requirment will depend on whether the Option is OTM or ITM.
For Long OTM Options there isn’t any additional margin requirement. However, for Long ITM Options, exchange blocks physical delivery margin from expiry minus 4 days. This support article explains it in detail.