One can buy Options shown within the range or if for hedging with shorts one is allowed to buy same number of longs outside the range.
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Still, things seem to be improving. All strikes allowed in 8th april expiry and monthly expiry. Is it due to people migrating to orbis? Can we expect similar conditions from now on?
I have 2 accounts - mine and that of my spouse. I noticed that the āoutside the allowed rangeā is not the same across these two accounts.
How does one explain this ! ?
It will be same at that point of time as ranges are dynamic and changes with time/underlying movement.
Difference can also be noticed based on positions, as we allow same quantity of outside ranges to hedge if one is having short options.
At a given point of time, I have had situation where in one account buying is not permitted while in another it is permitted.
Buy was not permitted in the account that was bigger and were shorts existed and buy was required to hedge.
Buy was permitted in the account which was small and hedging was not required.
It will allow based on shorts one has irrespective of calls or puts for one underlying. I mean if one has 10 lots of short calls, one is allowed to buy 10 lots of calls or puts irrespective of hedge.
This is calculated by adding all longs and all shorts irrespective of call or put on a particular index.
The point is that the same problem remains despite this chat has assurances of a fix from June 2020.
The Orbis fix is a half baked solution given its range of fine print and that may not work for many.
Would have been good to know if this is still something Zerodha is trying to fix with the exchange. The 15% per broker rule defies logic given the volume of clients for zerodha ( vs a smaller broker)
I have great regard for Zerodha and itās business practices so hope they will fix this
@manisangsu_bhowmik , I am trying to get my account custodian changed to Orbis to get away with this OI limit error. Are you already migrated to Orbis ? What range fine print are you referring to in your post ?
hi , no i am not moving to Orbis at the moment.Mainly due to the conditions they have stated below
"
- You will only be able to trade in F&O. The equity segment will be blocked for you.
- You will not be able to pledge holdings as collateral while trading."
Link
Additionally there is a net-worth requirement of 1 cr (something i read in the thread above by many)
I love the Zerodha ecosystem otherwise, but this is a huge roadblock at the moment
It is as dynamic as passing clouds. I have seen strikes get in and get out of range multiple times within half an hour. Zerodha is good only for option selling and for delivery based cash trades.
I remember the days when OI restriction was outside of a range of 1100 points for Banknifty. This week it was only 300. People cannot forget that only 3 months ago BN moved 6000 points in less than 1.5 trading sessions.
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As I write this , the current week nifty strikes allowed is 15300 to 15550 , ie 250 point range.
The joke seems to get better, just that itās on us
Yes 300 points range in Banknifty even as BN has moved up 300 points without a sweat.
In a few months, we could get notifications saying no strikes available
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As I write this, they shrunk it down to 15400 to 15550, ie 150 point range.
Pathetic !!
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yes- 200 points range in BN. Zerodha cannot call itself a stock broker. It is more of a ration shop.
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This is a serious issue. I wonder if there are rules stating a broker cannot have subsidiaries that can be used to get around these range limits. Or maybe start another company, something different looking like tastyworks, limit it to F&O or even just index F&O. Somethingā¦
I am sure @nithin is already planning something to get around these limits.
I suppose its now a question of whether Zerodha will do something to solve these range constraints, or will they let the competition solve the problem by gaining significant marketshare (we all know that will work too).
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We setup another company called Zerodha securities private ltd and took membership. But it is tough to run two broking firms in parallel, w.r.t regulations.
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ATM requires more premium to buy, hence lesser quantity gets bought vs OTM. Most traders donāt understand the risks of trading OTM, it is like buying a lottery ticket. But still many traders like to buy as many lots of options as possible in every trade.