Can I buy the same contract that I'm selling?

F&O
1

Hi, wanted to know that say i sell an 18200 call option, can I buy the same contract and keep my sell position open?
If not can I buy slightly in the money call option? Say an 18150 call option?

3

It is possible
One position must be NRML another being MIS

4
  1. You can have one as NRML another as MIS.
  2. You can take position via another broker or through another account (family) of same broker :stuck_out_tongue:
1 Like
5

But what’s the purpose?

6

Best trader government and broker can hope for.

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7

He is probably a systematic options trader. Sometimes it is easier to execute backtested strategies with trades that don’t cancel each other. Also useful when you mix more than one strategy where there are different targets and SL for multiple positions and rolling strikes.

8

Circular trading. :stuck_out_tongue_winking_eye:
Take opposite position. In one hour SL will hit and in other you will get some profit.

9

Negative sum game. :sweat_smile::sweat_smile:

2 Likes
10

For science.

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11

There are 2 things to be interpreted from your question ?

  1. Buy back the same strike
  2. Buy back the same contract

@Dhruv_Sharma - which one is the right question?

12

It’s a negative sum even if you take only one side position.:grinning:

13

Here it’s negative sum for self. :face_with_raised_eyebrow:
Otherwise it’s in total for all contracts.

14

Even in that case, its negative sum game for 89% people as per sebi data

15

Yeah. That’s the success rate in most business. So am cool with that.
But this strategy is 100 percent loss business.

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16

Not sure…generally novices try such things. In the end LOSS.

17

Yes, you can. This is a type of trading strategy in certain circumstances.

18

Looks like the purpose is to run multiple strategy in same account

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