Why anyone from zerodha not answering?
What do you want to know?
Suddenly there is no restriction in far otm nifty. Why it’s so and will it remain the same?
Will there be margin benefit for calendar spreads involving weekly with monthly options for Nifty and bank Nifty ? Unable to verify as margin calculator does not show weekly contracts
There will be, to get the idea of extent of margin benefit for Calendar spread, try with current month and next month contract.
The restriction on buying OTM options is linked to the overall OI at the exchange. Since we(our clients) get to utilise only 15% of the OI, we have to restrict OTM option buying when we get closer to the limit.
Since the OI at the exchange has picked up, we are able to allow all strikes to buy.
2021 buddy😂 everyone knows zerodha’s ‘soon’
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But will it be same later…I switched to 5 paisa because of this restriction
It still doesn’t allow buying deep OTM in banknifty…
If this OTM buy issue continues, Option traders like me will move to other brokers. After new margin, for getting the margin benefit and hedge the positions, we need to buy otm options.
Guys, Please suggest good broker for options trading along with Collateral margin facility.
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Does the new framework has opposite effects? My order was rejected on weekly nifty option 9600 PE. i wanted to buy it as protection.
Since options are actually for hedging, why zerodha doesn’t allow it. Plz come-up with a quota for hedging people and rest of your limit can be used for speculators. I like kite which is why i am still using your service.
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What was the error message?
Have you logged a ticket?
It clearly says all strikes allowed
And that too on day 1 of the month, it’s improbable that there could be OI freeze
On weekly there is a limit.
Is there a tracker for clients to know which strikes have no or little room for more OI
So accordingly, strategies can be built, calculations prepared for safe hedging
It makes no sense to sell an option and be forced to hedge it with another option that’s richer in premium
Soon will show on kite itself while placing order.
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Working on to allow hedge by buying option of any strike if one is having short option.
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Just check margin calculator
Thank you @siva for your reassurance
We are concerned and at the same time confident that Z will make it a win win