Same here… but a different side to it.
I was forced to buy option because of these issues.
As soon as I bought a PE of BN last week, guess around 340, the markets reversed in 1 huge green candle and I could have exited by buying 2 more at 280 and then exiting without a loss.
I was wrong- I belately realised I was trapped in this OI restriction non sense, as I had bought the farthest strike allowed, which means that if Bank Nifty moves 50 to 75 points away, you are locked out with a dead instrument.
I tried next day as well. It had fallen to 95 and went all the way to 240 giving me ample opportunities to exit peacefully without a loss, had I had the opportunity to average.
Zerodha policy disallows me to add more lots at a time of my choosing. So as soon as it came into range, I bought at market price, hoping to exit both given the momentum.
Now I am left with 2 lots at an average of 290, and the market reversed, and almost instantly the strike was disallowed.
I got multiple opportunities to exit without loss, but for that I needed to have the freedom to purchase more lots at 100-125.
Whenever it came back to range was when the price was around 200 and not favourable for either averaging or exiting.
After losing patience, exited them at 110,
Moral of the story, do not buy out of the money options as the range of strikes gets narrower and even a small move against you will bolt you out of the platform.
Mine was just 2 lots and a loss of 7200 and this made me realise how helpless the average trader is when rules are meant to benefit only the ultra rich.
I would say the better strategy is at the money long straddle in Bank Nifty- buy around 1.30 and exit around 2.30, on Fri/Mon/Tue.
It is safer and profitable. Also no need to worry about OI restriction if its at the money.