All contracts allowed but still oi error

As per your website all NIFTY contracts are allowed for next week expiry i.e. 10th june 2021 expiry but when i try to buy16100 CE . I am getting error.

Buy orders are blocked for this strike price due to open interest (OI) limits prescribed by SEBI. You can exit existing positions or place buy orders in option strikes within this range: 14800 - 16050 CE & PE

What is the the issue? and why is website not in sync with reality ? Or we just dont care?

Thanks…the website is updated now. But kindly reply if this was just one time thing or can be expected anytime?

15900 CE buying is allowed as per website but not when you place order … Why is this?

Forget website please, check on order window as it is dynamic.

Any api ? Where you notify this ? and preferrably postback on websockets?

On the order window itself.

Thats manual, Anything in api?

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No, not as separate message, but if you are a API user the rejection should give you the range.

Continuing the discussion from All contracts allowed but still oi error:

why zerodha put oi restriction on next weekly expiry.i have to adjust my weekly position but i am unable to adjust.what should i do now

who will be responsible for my losses.I am trading same strategy from last two months.I never faced this kind of oi restrictions previously.Tell me what i should do now

You can buy oi restricted strike by coupling it with a sell…but u have to sell first…
For example…u want to buy 34500 pe for adjusting but suppose it is not allowed…
Then you will have to say short say 32000 pe and then you are allowed to buy 34500 pe…
Considering the premium of 32000 pe for weekly as negligible, this kind of strategy can help you to adjust and overcome oi restrictions…
Hope this helps brother…

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I am a small trader with capital of 1 lakh .My strategy costs me around 80000rs with hedging . If i want to short option first then i need around 1.5 lakh which is not possible ,so i always buy options first to reduce margin. But yesterday zerodha put oi restriction in very narrow range .So i failed to adjust my positions.


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.

@siva @ShubhS9

if I have short call @100 and hedged it will a deep otm long call @2 for margin benefit, will I be allowed to put a sl market order for my short call @130?

The goal would be to exit the long call bot @2 once the sl on the sorry position is hit.

So in summary can the net position including pending orders be +be ?

Also for allowing long call in far OTM does it look at net short position or net short position including pending orders? If I’m short 1 lot and got a sl order for 1 lot, can I then take a far OTM position?