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Selling PUTS query


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Hi

I have a spreadbetting account with IG, I sold PUTS in a share and was expecting to be given a credit but instead I have to  wait until the PUT expires or sell at a profit before I am given a credit. Why does IG do that when other brokers give you a credit as soon as you sell the PUT?

Secondly given that I dont have a credit , and if my position is tested and I want to rollover can this still be done cosidering I am not given credits up front  as I assumed having the credit upfront improves the cashflow?

 

thanks

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Mak,

You forget you are spread betting. You are not selling the option....you are betting on the price of the option.

If you sell Dollar/JPY....do you receive yen?  Of course not, be cause you are betting on the movement of the price, NOT trading the underlying.

Best of luck.

 

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