Nifty 50 option lot sizes will change from Nov 20th. So if I buy a Nifty 50 Dec 26th Call option today it has a lot size of 25. If I hold this Nifty call beyond 20th Nov what happens to the lot size? Will I have to square it off before 20th Nov or can I hold it without any impact till expiry?
Thanks
An official circular has not yet been released by the exchange. We’ll keep you updated on this here.
I think you’ll be allowed to square off existing contracts. But, any new contracts from 20 November will need to have the new lot size. WIll wait for official communication regarding this. I am not keeping any open positions for now.
@RSE @Sujit_C NSE released the circular for revised log sizes yesterday.
Lot size for existing weekly and monthly contracts will remain the same until they expiry. You can check more details here: Lot size revision for index F&O contracts
Will Zerodha allow squaring off existing contracts with smaller lot size placed before 20-Nov after the same date?
What if you have a Nifty Put or call position with lot size 25 already placed before 20-Nov. Will you be able to square if off after 20-Nov when the minimum lot size is changed to 75?
So, if you are holding weekly or monthly expiry contracts, the lot size will not change for them and will continue to trade with same lot size until they expire.
If you are holding, quarterly or half-yearly contracts, the lot size will change only on December 26 end of the day for Nifty and December 24 end of the day for Bank Nifty. This picture should help you understand from which expiries changes will come into effect:
Thanks for the clarification.
I have March2025 24000PE at 250/- now trading around 350 how will it get affected an how will the price change. Will I have to sqaure it off before 26 Dec
In this case, after the revision, if you are holding a lot size that is not in multiples of 75 for Nifty, then you will not be able to square-off the position and will have to hold till expiry.
Before the lot size changes on 26th December, you can buy more quantity so that the quantity you hold is in line with new lot size or square-off the position.
does the same will happen with reliance after its bonus as its on 28th and the expiry is on 31st
Whenever bonus shares are received, the lot size will automatically get changed. Since Reliance bonus is 1:1 the shares shall double. So, the lot size will also double from 250 to 500. Also, the strike price will be reduced to half.
will the strike price be adjusted on the ex date or after some time
Price adjustment happens on the ex-date.
Read this article for an example:
