Thank you Siva for the quick help. Just for everyone’s benefit:
The order didn’t go through because I had another futures position open. So, I could buy OTM put for less quantity.
what is this new rule, every day or the other - you are bringing in limitations for sellers
Why don’t you click on read more?
This issue was not there last week. You can check my tradebook. I have shorted 1600+ qty easily.
Now the problem is that even if i short in 2 or 3 batches, i need to square off also in 2 to 3 batches. Which means i am paying unwanted brokerages
This is not issue.
Can check this. These limits are decided by exchanges and are same with any broker.
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next time - please send a circular. I was not aware and was not able to exit a position due to this
Not a easy thing but we are working on it.
This is not possible but we are doing few other things internally, hopefully in coming months we can see some improvement.
Hi I have never used Zerodha for positional/overnight option trading for OI strike blocking reasons. I have a simple doubt will I be able to do a double calendar or even a simple put calendar like
-26th aug 15500pe
+2nd sep 15500pe
@nithin @siva Also I intend to start using calendars and double diagonals more where next and far week option strikes will be used so will these positions be allowed? TIA
Zerodha encourages its clients to trade at the money options as otm is usually booked by the biggies.
You can try
short straddle
Long straddle
Long strangle
Or
You can simplify ditch options and go for Futures
Not sure if Zerodha might send a circular in the immediate future asking clients to only long futures on a bearish day as there are too many shorts and vice versa
Anyways we need to congratulate our beloved broker for aggressively adding more clients irrespective of OI restrictions
Looks like the elite 1% is blocking most strikes and we the sheeples need to grapple with atm and itm only
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Hmm… every single customer at Zerodha has the same rule in all ways. We have asked customers who want this OI restriction not to be there to use the Orbis partnership of ours.
Well Nithin, this is what we call a conundrum.
The presumptions made here are:
- All clients are having a net worth of 1 CR to make a choice.
- None of the clients who are eligible are willing to migrate to Orbis.
- The service offerings b/w Z and O are identical.
- Most traders here do not have any ambitions of trading ratios and are merely interested in scalping a few pennies intraday.
I am sure you know better
You didn’t get the point. The customers who move to Orbis don’t block our OI, which is why they move in the first place. Hence saying the below that elite is blocking is wrong.
Looks like the elite 1% is blocking most strikes and we the sheeples need to grapple with atm and itm only
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Thank you Sir
You can do, if long leg is outside the range we allow then place short leg first and then place long legs as we allow any number of longs outside or not of our range if one has those many number of shorts.
Please allow collateral margin facility in Orbis, lot of people would happily move. The extra 3-5% (annually) is something lot of folks are not ready to part with.
We are working on some other way, hopefully it may help, give us sometime.
Thanks and how is the process to exit such outside range OTM longs in a calendar spread? Like any order /sequence for exit ie1.first exit longs then short or 2. close short strikes first then long strikes(assuming I have enough margin in both cases)? I am asking because the nudges always give some headache in NRML positions.
While exiting no nudges will show up, also if breaking hedges one can exit shorts first as they require higher margins to hold.
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The best thing to do is to take all the short trades in zerodha account and take the long trades in some other account.
Since both are your accounts - end of day you wont have a hedging problem.
I started with this work around, now that i have completely moved out of zerodha. My family members still use zerodha for trading due to its wonderful UI & experience.
- Zerodha will allow debit spreads at any strike prices - so no concern here.
- For credit spreads and margin benefit, you can depend on another broker (get into long first and then do the short trade)
- For naked short selling, zerodha has added benefits - their margin calculation is dynamic ie if you get into a CE short position, automatically the PE short position will be having margin benefit
For other broker which i am using, for executing the 2nd leg you need to have the original margin. And once the position is taken your margin benefit will apply
eg: if you have 40L you can easily short 1000 qty CE first and then 1000 qty PE in bank nifty in zerodha.
Other broker will allow the first trade of 1000 qty CE, but to get into the 1000 qty PE you need to have 40L again. Somehow if you are into the trade then the final margin falls to 37L for 1000 qty PE & CE short strangle.
@siva
I am holding PE positions.
Today I sold 50 NIFTY DEC 19500 CE . To hedge my position, I tried buying equal quantities of NIFTY 7th OCT 19000 CE (weekly CE options), but because of OI restriction I was not able to buy.
Can you please explain why I was not able to buy CE even though I had sold CE option.