What is the Maximum lot we can sell in Nifty50 options and risk involved?

[Praveenutturi]

Hi All,
I would like to know what is the Maximum lot we can sell in Nifty50 options in Zerodha?
I also would like to know what is the risk involved in Nifty50 options selling if I trade intraday with planned Stop Loss(SL)?

Regards,

[ShubhS9]

This will depend on the open interest of the contract as there is a client-wise open interest limit set by the exchange at 5%. What this means is, a single individual cannot hold more than 5% of the total open interest on any future or options contract. So if the open interest is 1 lakh lots, you cannot hold more than 5000 lots in that contract. Explained here.

@Praveenutturi

I also would like to know what is the risk involved in Nifty50 options selling if I trade intraday with planned Stop Loss(SL)?

If you are trading with a Stoploss, your risk is defined as per the SL set by you. However, if the markets are volatile, there can be chances that your SL order will not execute if price moves beyond the limit price specified. For better execution you can keep some difference between the trigger and price, you can learn more on how the SL orders work here: What are stop loss orders and how to use them?