Is it safe to trade in Nifty Options

In a post, I have read that you will be forced to hold nifty options (which has 75 lot size) till expiry. Is it true or not? Can we trade normally like we used to do it earlier

Hi Aditya,

What you heard is entirely wrong there are no such restrictions passed by SEBI

You can trade like before. Option buyer will be having no such restriction for sure.

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You must be referring to this post and this part:

All long-term Nifty contracts with a lot size of 75 will be reduced to 50 with effect from 25th June 2021. You can only square off your positions in multiples of 50 from 25th June. Any remaining position in the contract will be considered odd lots (not in multiples of the valid lot size). You will not be able to exit these odd lot positions, and these will be settled by the exchange at expiry.

This is applicable for Nifty long term F&O contracts. For example, if you were holding September 2021 Call Option (Lot Size 75) on June 24 and haven’t squared-off your position then from June 25 onwards the lot size will be revised to 50 making extra 25 quantity you hold odd lot.

As you can trade F&O only in multiples of lot size here 50. You won’t be able to sell this odd lot of 25 quantity, which will be settled by the exchange on expiry.

Currently the lot size for all Nifty monthly expiry contracts is 50. While the lot size for Nifty weekly expiry contracts (July 1st, July 8th, July 15th and July 22nd) is 75 and will be revised to 50 from August weekly expiry onwards. You can trade these weekly options just like you normally do, no restrictions.