OTM options buying for Hedging

F&O
1

@siva @nithin Again a long pending topic when is Zerodha going to address OTM options buying for Hedging purposes - Now execution of Straddles is difficult as near OTM options buy without already sold option is not possible. So lot of capital is required upfront to execute simple strategies. And for a long time this is pending - What plans do you have?

2

@ShubhS9 @nithin @siva Will you provide any updates?

3

@mohitmehra Can you.

4

Hi @Vijay3,

We have partnered with a custodian - Orbis to allow our clients to enter into positions which are not possible with the trading member level OI restrictions. This involves opening a CP Code account with Orbis - more about this here.

Alternatively, we are also close to launching our own CP Code feature. If a client opts for this, their trades will be settled separately by the stockbroker with the clearing corporation and the OI limits will not apply. You can DM me your client ID. Once we begin the pilot, we can add you to the first set of users with access to the feature.

2 Likes