How liquid are the index options?

Is it possible to get rid of 30 to 40 lakhs worth of options (premium value) in seconds. I was thinking of day trading, and the only thing that I find it easy to do, is trade index options. Since options in general move a lot more than the index/stocks.

I just wan’t to stick to index options, which are most liquid.

ATM index options are very liquid for your situation.

30-40 lakhs of options move smooth as butter on toast provided you trade them at the liquidity pool like institutions do.

If you are an average retail trader , trading them at illiquid areas out of emotions will end up creating impact cost and longer fill periods.

I am talking about the premium value, not the who lot value. I hope I make that clear.

Also what about illiquid areas, can I trade them on zerodha with ease.

Hi Keshav,

As portfolioplus911 said, ATM index options are very liquid and exiting the position should not be a problem. Liquidity is typically higher during the morning (9:30-10:30) and then in the 2nd half (2:30-3:20) because the big guys (FIIs etc.) are active during that time.

For a retail trader, this amount is really huge so I hope you’ll have risk management in place. I also advise trading via call-n-trade rather than depending on your terminal because you never know when system issues strike. I am really paranoid with big positions therefore I break the lots thru 2-3 brokers - in case one is facing technical issues.