Covered Call on Yesbank 55CE March blocked saying illiquid option.
In order to safeguard few who have been mislead by fake SMS or schemes, some essential features of executing Covered Call or some strategies using Options are getting blocked .
Kindly have a look into these .
Current spot is 35, so covered call means writing call some 5% away or 10% away and at max 20% to spot,55 call is more than 60% away to spot and premium on that will be 5 paisa or max 10 paisa and doesn’t add value under covered call writing.
This definitely falls under illiquid strike for now.
Please leave that to discretion of Traders.
It is upto individual traders to use different strike price for any Strategy.
Where is equality between traders. Guys on other platform would able to trade in these strike prices and execute strategies ?
It is like there was a traffic jam or some problem created in particular road do you stop vehicle movement or put some traffic rules and regulate traffic ( bad example ). Blocking a particular option strike does no good.
It is the problem of particular trader who has shared his password to others and got misued/cheated. That doesn’t mean you block everyone that opportunity.
Does SEBI even allow you to block few options from Regulation point of view . There is reason for everything.
@nithin : please look into this. What is your opinion on this.
@others : please pitch in your views. It is denial of the right of trader and an opportunity missed.
What are you talking? which strategy of yours is blocked? shorting 55 call of yesbank??
Few others also blocks, anyhow that is up to the broker.
Yes, it is up to the broker what they can block.
We are blocking which are very illiquid and which won’t effect 99.9% of our clients.
Premium is about 0.5 rupees which is rs 4000 as per its lot size.
Also we are not blocking that or any strike entirely, in this case if one places sell order at .5, it will go through. We allow based on liquidity and spreads between bid and offer.