Gold and silver are getting higher day by day, but the call options for these are very limited. If we see current otm call option, the far one is 122000 ce which is just 3000-3500 points away and same is case with silver. Unable to sell otm call options as 3k points is way too close. Same with silver. 10% away options should be there both sides
Hi,
Yes, the CE side OTM strikes are fewer in both Silver and Gold. We allow all strikes that the exchange has allowed for trade.
We have spoken to MCX exchange, and they have confirmed that they increase the strike on an EOD basis. (They have some criteria for it.)
Ex. They have added 5 strikes(up to 123100 from 122600 in Gold) more today compared to the last working day.
You can check the exchange circular for Gold here.
Hi,
No, only ITM contracts devolve to FUT.
If GoldM settles above 1,08,000, then your GOLDM 108000 PE becomes OTM.
If I will sell goldm 108000 put options,will u square off my position in dis options on expiry day,it expires worthless
We generally do not reduce/square off OTM contracts on expiry day.
On the option expiry day, we check for CTM/ITM contracts and if they do not have sufficient funds for future position, we reduce/square off position.
Did you tried selling gold ±10% options ? How was your experience…How many wins or losses per lot ?