Cover Order for Options

General
1

I know that as part of a Cover Order, placing a stop loss order can reduce my margin requirement.

  1. Is this feature available for Options (Seller only). I know it is available for All Futures and Commodities.
    If NO, Why not?
    If YES, Can I place a stop-loss wherever I want e.g 30% OR Is there any guidance for coming in the ambit of Covered orders. e.g cannot place SL greater than 10% etc.
  2. Is this valid for only intraday? I know MIS is Intraday.
    If NO, Can I use CO for carryover (with margin) instead of NRML.
2

I found the NOTES section in this link very useful: https://zerodha.com/policies-and-procedures

CO is not available for Options, (I supposed MIS can be used for Intraday)
CO and MIS are both intraday and are squared off automatically at the end of day (3:15 for Equity and Options, 3.05 for Commodities and 4:30 for currency)

Only NRML can be used for carryover with 100% margin requirement.

3

Hey,

  1. Cover order is available only for NIFTY options, & isn’t available for Stock options & Bank Nifty.
  • Not allowed in BNF due to exchange mandated Open interest limits
  • Not allowed in Stock options, probably due to high volatility & lack of liquidity.

& you will be able to place the SL trigger only between the range specified which varies per scrip.

  1. Cover orders are valid only for Intraday trades.
2 Likes
4

A little too late XD!

1 Like
5

Trigger is in range but still rejected --1st leg was rejected so cover oder …

6

Hello,

I have a doubt regarding this; let’s say I bought 31500PE of current week expiry at 300 NRML and let’s assume it started moving against me, can I place Stop loss order @ 250 and also a target order at 350 (only if it starts going in my favour)?? Can this be done in options…(I know it can be done in equity)

Thanks in advance

7

Can be placed only if extra margins are available for one leg of sell order, as you have long position one can place either target or stoploss, to place both extra sell margins are required because there is a chance that both get executed and result in short open position. One can use BO order to place both sl and target at once on nifty and banknifty options.

8

Thanks Siva …

9

How do i enter the short straddle nifty option strategy (e.g. : strike 9300 :::: sell call and sell put simultaneously) in bracket order/ cover order in intraday ?

10

Please, don’t post questions if you really don’t care for answers, you have been asking totally unrelated,ridiculous questions and people are really taking time and putting efforts to answer them.
In many threads you are doing the same, this is my request.
BO/CO allows one order at a time for one contract and you are aware of it, I am wondering why still you post this query.

12

is there any way we can make basket of co /bo ?

Or 2 leg order type etc for bo / co ? .

I want to shortsell option stategy nifty strike 9300 : call and put , both simultaneously in the cover order !

How do i do it ? Is this possible?

13

Not possible.

14

The Most Important features the Cover Order & Bracket Order is not being provided for Intraday Options trading at Zerodha !
This is being done on the name of Market Volatility.

How can even Zerodha justify to say this ??

Is it better to not put the Cover (SL) and take unlimited risk than to not put Cover Order and avoid hitting SL in volatality is what you think ?
A trader might loose 4-5 thousand due to volatality using Cover Order. But might loose all the capital if there is a sudden move in opposite direction and there is no SL.
Why is Zerodha playing oversmart roles without understanding the basic requirement of traders.
You guyz are making this platform dumb and investor centric. Not Trader friendly.

ZERODHA do you have answer for this ??