Hedging can be done only on same series, so you can try with 19000 Dec. Since you have already sold 19500, this trade will go through.
Did you have long position in other strikes? We consider net long/short of option positions rather than specifically CE/PE.
For eg. You have below positions:
OCT 17500 PE long: 50 Quantity
DEC 19500 CE short: 100 Quantity
Net you are 50 long and 100 short, so you can only buy 50 more quantities not 100.
Not limited to same expiry, you can hedge across any expiry.
@ShubhS9 As per your explanation, by taking net positions, I understand why I could not buy far OTM options.
Being said that, do you think it is logical?
For example, If I buy NIFTY 17500 PE and sell NIFTY 18500 CE. Do you this it is a edged position.
How can a buying PE will hedge selling CE?
From implementation perspective, it might be easier to take overall net positions, but ideally you must take net positions for each CE and PE.
If I have following existing positions , how many new longs I can open without any oi issues in OTM strikes.
Case 1. Bn Future long -1lot, PE Long - 2lots
Case 2. Bn Future short - 1lot , CE Long - 2lots
@siva-reddy @ShubhS9 please clarify
Nothing more. As we calculate based on net longs with net sorts irrespective of call or put or expiry. There is no limits if one is taking in allowed range though.
This is by us as we are hitting our OI limits.
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@siva-reddy Thank you for the clarification.
As a customer, my request is to calculate the net positions separately for CE and PE. By calculating separately, it enables us to hedge our short positions on each side.
For example, Suppose, I think the market will go up, so I buy a CE. At same time I wanted to sell PE. Now as per Zerodhaâs calculation, you are restricting me to hedge the shorted PE position which leads to greater risk, if market falls.
I hope Zerodha and @nithin will consider the customerâs interest and enable the customer to manage their risk better by modifying the net calculation of long and short position by CE and PE independently.
Zerodha is doing a wonderful job by reducing the entry barrier for retail customers into stock market. I appreciate your efforts and thank you for the same.
@nithin
Why is it hard for you to take second license and open Zerodha 2.0?
Or maybe take 2-3 licenses.
This way you can reduce the OI load and allow more positions.
We already have 2nd license from long time but there are many regulatory hurdles to run two at a time, said that we are working on something to counter OI restrictions, should see some results in next 4 to 5 months.
Thanks for reply Siva,
I was forced to stop trading with Zerodha months ago due to this issue.
Have to settle with clearly sub-par second choices.
But even you seem to be not that optimistic when you say âsome resultsâ that too after 4-5 months.
last time you guys tried something, it all proved useless ultimately.
How about launching a product exclusively for âstrategy spread tradersâ, the so called new breed of traders that @nithin talked about so enthusiastically in his posts after NEW margin regime was launched.
Free them from these restrictions.
You guys have blamed options buyers for this mess multiple times. Let them have all the restrictions.
Hi,
I have sold 14th Oct 17500PE and now want to hedge it by buying 7thOCT17400PE.
Why is this not allowed?
I have a net short position.
Thanks
Hiren
We understand your hurdles.
how are the brokers who donât have any OI restrictions able to tackle regulatory hurdles ?
Hey @Hiren,
As long as you have net short positions, you will be allowed to take long CEs and PEs for the same quantity. Unable to get this info from the screenshot. Can you create a ticket so that it can be checked?
This was yesterdayâs position, so now getting the screenshot is difficult. Sharing the same screenshots again. If it helpsâŚ
The other open positions were call longs.
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We consider net long/short of option positions rather than specifically CE/PE.
For example:
You are 2 lots long on Nifty 18000 CE and short 2 lots of Nifty 17500 PE. Net you are 2 long and 2 short, in this scenario you wonât be able to buy options outside the allowed range.
@siva-reddy @VenuMadhav please consider floater and ultra short term fund as cash colleterial , for these cash requirement we need to park some money here is really headache , please treat debt fund as cash colleterial - unwanted penalty from your side we need to pay , I know its not triggered from NSE - you people are making extra money from our side ,
@Neelesh Can we review this and update here? Any reasons for not offering them in the approved securities list?
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