why does ending strike xxx50 (eg: 15550,15650,15750,…) would have low volume when compared to xx100(eg:15600,15700,15800,…), Any particular reason? or is it a strategic one by the traders?
General psychology thing, people like trading in 100 intervals on nifty.
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Can i know the option buying range(NRML) at the beginning of the day?. i know it changes with OI but i want to know the range before the market opens
Hi, @ShubhS9
Nifty Spot is 17000,
Lets say,
I short 17200PE (NRML) then i buy 15000PE (NRML). The same day i squared 17200PE.
Now, Can i carryover 15000PE position until the expiry?
Yes, you can carry the position until expiry.
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Even if it is in the outside OI restriction ?
Yes, even if the Option is outside the allowed range. You can even exist the position if you wish to. The only restriction is that, once the Option is outside the allowed range, you won’t be able to initiate fresh long position. You can sell the option without any restrictions.
Also, as you know, if you hold a short position, you can buy options at any strike price up to the extent of quantity shorted.
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Hi, I am observing in the past three days, even NRML OTM buy is allowed for all strikes for the current week. is the restriction is removed temporarily?
Which strike ?
All strikes in Bank nifty
I think you have not gone beyond 500 points
@suri You can check the link for strikes allowed for trading.
In general, NRML there will be some range. But this week I am seeing all strikes allowed even for NRML too. @ShubhS9 Please confirm whether this temporary or permanent.
F&O margin calculator - Zerodha Margin Calculator
The restrictions and allowed range are based in open interest utilization. So this can change any time depending on OI limits.
@ShubhS9 I have gone through the posts above.
I am unable go long on put option (outside the range) even if I am long Future of the same instrument. For e.g. I am long Nifty Jan FUT then I should be allowed to go long on any Put Option to hedge my position. When I try to go long on 16500 PE Jan22 Nfity PE (with an existing live/running Jan22 Nifty FUT contract) it returns the dreaded Open Interest Error.
A trader should be allowed to hedge using a put option as long as he/she has a long Future position. This is really frustrating not being able to enter into trades even if you wish to wish to hedge you existing position.
Hi,
Only if you have a short Index future or short Index option you can buy either call or put outside the range.
we are working on this to tweak the logic and it may take some time.
@Ragavendran_M but the logic should have been corrected right from the start, buying a put option to hedge a long Future Index position is one of the most prominent way to hedge your exposure.
@nithin - In my humble opinion, active traders (revenue generating segment for Zerodha) will move (or have already left) to other platforms if such issues are not taken care where a person cannot buy a put option to hedge exposure to a long future position in Nifty Index
Is it possible for different expiry for the same underlying @ShubhS9
Eg: nifty spot 17400
sell 17000pe jan expiry 2 lots
buy 16000pe jan month 1 lot and feb month 1 lot?