is there any drawback of carrying overnight deep ITM option buy position? my position is 500 points away from index spot. apart from liquidity problem is there any other major problem?
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It is equivalent to a carring a futures position with a defined risk in case it is a buy position.
Except liquidity, there are no other issues. Movement will be bit slow as they track futures
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Dont never do carry overnight position because Indian market is manipulative …once you enter the market even you are say kuber jee of stock market rules regulations works against you and in this environment carrying Btst position leke jaane se better hai intraday game ko pakadna ya koi garib ko jaake apna position ka 5 percent dedo aapka planetery position strong honge …and there is also a scene of gapping up and gapping down …even if you say I have so much money …deep in the money positions also costs more money and there is a time decay going on always…but you are saying that 500 points away from spot …I will advice you never carry such position … and modi ka jamane me kabhi nehi …bhai kab boldega pakistan se humlog humra kasmir ko le lenge and war announce kardega tab kya hoga pta hai ? market hoga put sidha gap down …??
its not naked DEEP ITM buying actually. its part of my hedged position. there are other 4 legs along with the ITM option.
Yeah you can do that , but the number of dar OTM buying legs should be less or equal to the number of Short positions be it option short or future short . And yes , first do short
/ first place the sell leg orders then buy OTM. OKEY 
. OR if you have already a spread position in MIS (intraday) having deep OTM buy , then sorry, you can’t carry forward them . Best of luck