Too narrow buying range allowed


Does zerodha really want retailers to do option selling with these restrictions.
Even If i want to hedge its not possible.

PLEASE DONT HIDE this post and also Don’t say migrate to ORBIT. I am not comfortable with it.

Once you sell, you can buy any strike to hedge. No?

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Its like saying- If you don’t like the act of demonetisation, go to Pakistan.

I would like to get margin benefit so first buy otms

Well, its Sebis rule. I suppose the market leader Zerodha will get affected most and will certainly result in market-share distribution over time.

What is the sebi rule regarding OI… What is the reason you didn’t take this position??

Does anyone know if any broker allows to buy deep OTM options?

In my opinion, this restriction is not applicable for all the brokers. Since Zerodha have so many customers, their quota (15% I think ) gets filled up so fast and they cant allow the customers to take new positions.

Either Zerodha has to take a new broker licence to compensate for the same or do something.

Whats the point of Margin reduction benefits when you cant buy OTM options to sell the nearby options.

This is a lifeline provided by Sebi to the smaller brokers. I think soon we will have a scenario where the top 3 brokers will have similar market share.