I never believe them but I like the way how they are creating new one sided theories for all our questions.
Simply saying every entry level traders knew that, the brokers don’t want clients to hedge their postions by buying deep otm options so they block otms as much they can.
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Today we saw 200 range in BANKNIFTY and 150 range in nifty
That means that they are allowing hni to take positions or they are allowing huge shorts to build up there and they have lesser fear of short squeeze if more and more brokers add restrictions
Zerodha should ensure they don’t add more clients if they are are already having 15 percent of the market share
Why onboard more accounts when nobody knows if all strikes could be restricted for the small account traders
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2nd trading day of weekly option itself all strikes are blocked, but they make ATM strikes never get blocked for 3more days. They have no limit breached when it becomes atm. Now their theories on sebi and nse rules never applies to them.
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@nithin
I understand that if I sell first then I can buy equal or less quantity even with OI restrictions.
Your basket order understand the spread for margin. Can it be modified to take care of this scenario too?
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Not possible for now.
What is the remedy for the OI restriction. In June, the peak margin requirement has also increased. This is another bummer. I don’t know why they need full margin for intraday especially when someone can have SL for all the intraday orders.
Earlier I used to sell MIS, buy hedge and then convert short MIS to NRML. Now, to have the same setup I need to punch multiple orders ( 2 lot sell/buy (hedge) ). It is becoming more time consuming and slippages also occur. It adds to the brokerage cost which at one point of time was the USP of Zerodha. If this is not fixed in the near future, I will be migrating to some other broker. I really like Zerodha, but with the new margin requirements can’t handle the OI restrictions.
This thread is height of patience.
14 months on, niether SEBI nor ZERODHA gives any attention to “blocking OTM options”.
But irony is, people are still hopeful something will happen
I understand that if I sell first then I can buy equal or less quantity even with OI restrictions.
Your basket order understand the spread for margin. Can it be modified to take care of this scenario too?
Please do this… It is much required.
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Can’t buy otm and then short to create a strategy due to oi restriction, can’t short first and then buy otm due to margin issues!!! What is the workaround to this?? Anyone…
Thanks
Reminds me of the nostalgic 90s when I used to train travel. Sometimes IRCTC used to block entire train cars for their guests in the name of special or advance reservations.
Conflate that feeling with option buying on Zerodha, thrice told.
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zerodha allowed all strikes for MIS product type…is this permanent feature or only till september 2021?
and can we convert mis orders to nrml order in this case? @siva @ShubhS9
Permanent.
Not allowed.
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not even in case of hedged position?
@siva It shall at least be allowed to the extent we have short position in Normal. Good idea though to have this implemented.
Yeah, that’s the plan.
Not as of now, but if it a hedge then one can take using nrml only.
The only issue is that you will not get intraday margin benefit atleast till Sep
@siva,
do you have any time line when this can be possible.?
I want to take some hedge for my position by buying OTM put/call. Previously I was able to do it via MIS but now the MIS trades or not getting converted to NRML. so if i have a NRML OTM put/call already as a hedge and if i want to move my strike position it is not possible without closing the existing NRML OTM put/call.
Yeah, will check on this.
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This is what I observed today.
My current position is 1 long CE-NIFTY
I sell 1 PE-NIFTY, no problem as I am selling.
I try to buy 1 PE-NIFTY, it does not allow as I have 1 long CE.
Looks like It is counting PE and CE together while buying OTM options.
Zerodha really needs to start rationing OTM long options, at least allow a few (5-10 lots) in one account.
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