What are your revised trading strategies in view of compulsory physical delivery for F&O stocks

#1

Dear All,

Given the introduction of compulsory physical settlement, wanted to understand the strategies traders are adopting to maintain their profitability, and how they are trading in the last week.

I am an option seller. For me, it has effectively meant squaring off of positions in the Monday before expiry. Given the prices of options reduce the most in the last 5-6 trading sessions, it simply means leaving money on the table even if the option is not in the money (not willing to take the risk that it goes in the money in last 2-3 sessions). Effectively it reduces returns and causes a lot of unnecessary headache.

If someone has figured out intelligent ways to trade despite this restriction, please enlighten me and the group. Please do not give frivolous answers. Thanks a lot for your help.

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