Strike price is outside the allowed range

F&O
166

1)Can we initiate short position FIRST outside the allowed range for Nifty and BN ?? and then Long position within
allowed range??
2) We should initiate short position FIRST in the allowed range for NIFTY and BN and then we can
take long position outside allowed range for hedging.
Which one is correct??.
PLEASE explain

167

You can initiate short option position first (short position you can create at any strike, there was no restrictions on shorting option) and then you can initiate long position outside the allowed range.

168

Thanks for your quick response though today is Sunday and Pooja Day

1 Like
169

for the same expiry?

170

You can take position across any expiry.

171

Can you update for November month?

172

Extended until November 26, can check SEBI release here.

1 Like
173

Situation on zerodha remains bad for OTM. Allowed range is very narrow and restrictive.
Creates serious issues while hedging.

Worse that it kicks in when it really matters - market is moving and fresh positions are required to be taken !

3 Likes
174

Is this possible to do now?

175

thia is a good idea every should have a limit on how much otm they can buy … so that small retail traders can get to buy atleast one or two otm lot to hedge

1 Like
176

I was trying to sell 35000 PE and hedge by buying 34700 PE.
It said it was outside the range.
This was when market was trading at 35500. Isn’t this a serious issue? Are other brokers also following this?

1 Like
177

yes, I badly needed to buy 36000 CE this week but only today it is opened up for us and at such a high price already.

178

You can have number of buy positions = number of short positions.
If its a fresh position, sell first and then buy. Zerodha will allow.

1 Like
179

hi nilesh

That doesn’t help since it requires full margin upfront.

180

So its been an year now and Zerodha hasn’t been able to provide a solution. :expressionless:
Nifty is at 15000 today and the trading range is 14800-15300.
How am I supposed to hedge?
Can anyone confirm if this is a problem of Zerodha only or is it same with all brokers?

1 Like
181

This doesn’t really help. Because to buy the short position first, there is no margin benefit.

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182

Hey bro, Can you please guide me the steps how to migrate the account and what are the requirements. How many days it will take to migrate to Orbis. Waiting for your reply

183

You can create a ticket here. Our team will get in touch and help you with the process.

184

I have created a support ticket yesterday, no response until now and it’s weekend. I hope you will respond on monday

185

Hi,

Can I buy ITM option outside the range or not?? please clarify. Thanks,

1 Like