Referring to various SEBI/NSE circulars (including, but not only, circulars of Short selling , new margin rules and others),
Please reconfirm me, is there any position limit or restrictions or any other point to take note of, from regulatory perspective, in executing these option strategies on index options
Calendar spread( Short one Option and buy same strike price in other expiry) / Strangle / Straddles / Iron Condor / Spreads etc
I mean as a retail investor , do i need to keep in mind any point from regulatory perspective while executing these strategies.
As an retail trader, you don’t have to worry much about regulatory nitty gritty and position limits and all. Only thing you need to ensure is there are sufficient margins maintained for trading and you will be fine.
If you are trading big quantities, one thing you should know is exchange has Quantity Freeze limits in place, which means in one order you can only execute certain number of Lots/Quantities, taking example of Nifty, this limit will be 5000 quantities or 66 lots in one order, you can learn more about this here.
You don’t have to worry about this much, but there are Open Interest limits in place, you can learn more about this here.