How do u square off deep in the money option when there is no buyer

F&O
1

Tataelx put i bought last week went deep in the money but there were no buyers to square off, only buyers are bots which buys at like 50% discount. After waiting all day, one buyer came with 5% discount, so im forced to sell at that price otherwise zerodha would have squared off my position for any price to lucky bots because i didnt have enough margin for physical delivery, and it is monday not even expiry day.

so why writers not trying to square off when the strike price kept going deep in the money everyday?
also why zerodha trying to square off the position on Monday when expiry is days away?

2

You can carry with stipulated margins, big brokers are closing on friday itself and many small brokers are closing from monday onward even if their clients have enough money. Zerodha is allowing to carry till last day and even to participate in physical delivery provided enough cash/shares are available. If all the brokers are closing their positions how can liquidity is available, Imagine the same situation on expiry day where there is no counter party and client is not having enough money to take or give delivery. Broker has to bare the consequences. If 1000 clients did the same? all the clients money with broker will be blocked, so basically it can effect all clients of brokers irrespective of their position causing a systemic risk. I hope you understood.

2 Likes
3

If brokers are forcing their clients to square off how there will be a liquidity crunch? Logically there should be more participants which brings more liquidity. Isn’t so?
Why people are squaring off at higher discount?

4

Joe …what was put you bought and what price you square it off and what time… If you don’t mind

5

SEBI is making retail traders loose money…blind SEBI…how many companies had fruad people… no action on them… Physical delivery became a big issue for SEBI …hmmm…

6

Starting what time zerodha is trying to square off the position? Say on the last four days…? Are they trying to square off right from… morning , or do we have cut off time till 3.15… you were saying you waited long time before squaring off…

7

No broker is forcing to close the positions. Most (not all) are asking for additional margins in the last week.

This is very anti-customer because the additional margins are not required by sebi or the exchanges.

The broker’s prop positions dont need these additional margins.

The broker can create new positions in his prop book even 1 minute before expiry.

8

i bought 750Pe for 15rs last week, i had to sell it for 63rs yesterday. after it broke 680 support i expected it to reach 650 but im forced to square off, stock still going down, lot of profit missed.