I have active position in options for Bank Nifty for Dec Month. Bull call spread. “Long” leg is in profit and hedged with “short” leg. Short leg and long leg both are deep ITM now. I am getting auto email with the captioned subject “MTOM warning percentage”. Email body is as follows:
Your MTM loss has reached -51.03% Position will be liquidated at 80.00% loss , Pls pay immediately to avoid liquidation. Call RM/Dealer for detail.
The issue is similar to what is discussed in zerodha community:
Even though my short leg is in loss but it is fully hedged with long leg. Since it has gone deep ITM, I am NOT interested to square off any legs. My M2M for the combined position is in profit then why do I keep getting these emails every day? Please see an opportunity to consider this issue on urgent basis.