Does Marking-to-Market Occur in Options Trading in the Same Way as Futures?
No, marking-to-market does not occur in the same daily cash-settlement way for options buyers. An option buyer pays the premium upfront and has a limited loss potential (the premium paid), so their position is not marked-to-market daily.
However, for an options seller (writer), the position is marked-to-market daily. Since a seller has unlimited loss potential, their margin account is adjusted daily to reflect changes in the option's value, and they are subject to margin calls.
