Upper circuit in options

F&O
1

Thinking of shorting this deep OTM option. Screenshot attached below.

The current price is 4.95. I’d like to sell this and place a stop loss of 8. But I’m unable to place a stop loss of 8 because the upper circuit is 6.8.

I’d like to know what happens if the price of 6.8 is hit? Will the upper circuit be revised and will trading continue? Or will trading in this strike be stopped for a while - and if yes, for how long?

And in my case, does it make sense to place a GTT order instead of a stop loss?

@ShubhS9 @siva-reddy @MohammedFaisal

Thanks!

Screenshot_20220907-100001__01
Screenshot_20220907-100001__011080×2077 219 KB

2

Trading will not get stopped. Operating range will be revised. Read more here.

3 Likes
3

@Ragavendran_M Thank you.

So in my case, it’d make sense to place a GTT order as a stop loss, and when / if the upper circuit is breached and revised, I can place a regular stop loss then. Would that be correct?

Thanks again.

4

Yes you can place GTT. If GTT gets triggered it will get activated, you can modify that order too or you can cancel the GTT and place the normal orders.

2 Likes
5

Thank you.