How to reduce exposure with increased minimum lot size for Index options

F&O
1

As the lot size for NIFTY is increasing from 25 to 50, hence the notional value of the contract is increasing from around 5 Lakhs to 15 Lakhs.

I trade NIFTY futures, is there any way (using options) to keep my net notional exposure to around 5 Lakhs even with the increased lot size?

@shabbirhasan @Jayakumar

1 Like
2

Nifty lot size increased to 75 not 50, if you are option buyer only way to reduce your premium is by selecting higher strike price, but for strategies involving option selling i dont think its possible to bring down your net notional exposure.