Clients can receive a premium when they short call or put. When doing so, they must deposit enough money to fulfill the margin requirement.
There are different margin requirements for option contracts with different strike price and expiry date. The margin requirement can be found out from the HKEx web site Client Margin Estimate Reference Table. In case of conflict between the HKEx web site and the option statement, option statements shall prevail.
When there is an intra-day margin call, it is necessary for clients to deposit sufficient money into their options account within the time specified.
For Short positions, kindly remind about the contracts' notional value (Stock value of short positions if contracts is being assigned). Additional margin requirements may require for large short position, clients may need to prepare additional cash as margin requirements for risk control. For details, please contact us.