# Which broker do option sellers prefer?
**URL:** https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214
**Category:** Brokers
**Created:** [August 1, 2020, 2:30am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214 "2020-08-01T02:30:25Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@Karthik\_Mahadevan](https://tradingqna.com/u/Karthik_Mahadevan)
#### Post date: [August 1, 2020, 2:30am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/1 "2020-08-01T02:30:25Z")
I want a broker with following conditions:
1. **Collateral** - offers collateral margin basis NSE stipulated haircuts and not more
2. **Cash component of collateral** - Accepts liquid funds for the cash component required by NSE (I am very wary of letting idle cash with broker, would be more comfortable is liquidfunds or at least liquidbees are permitted as cash component)
3. **Margin** - Margin for hedged positions to be as per SEBI framework only (was checking upstox, their margin calculator suggests a higher margin for iron condor on nifty as compared to Zerodha)
4. **Mobile platform** - Decent mobile trading app and decent web platform (would prefer NEST, but could do with decent web platform such as Kite)
5. **Brokerage** - I actually do not mind paying a higher brokerage as compared to Zerodha, provided the other stuff is there
Zerodha fits the bill perfectly on all of the above and is a cut above the competition. But the blocking of strike prices to OI issues is a drag. Looking to shift out to the 2nd best because of this issue. Which is the next best broker?
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### Author:  [@Raja\_123](https://tradingqna.com/u/Raja_123)
#### Post date: [August 1, 2020, 3:19am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/2 "2020-08-01T03:19:47Z")
Hi @Karthik_Mahadevan great question and I know many many other option traders are facing the last issue you mentioned. Though it’s not zerodha’s fault, they must figure out a way to grapple this issue.
To you question, I don’t know the answer but one suggestion I could give you is, not to go with 2nd or 3rd largest broker in India as you would end up with same issue (blocking of strike prices) again because this issue is directly proportional to no. of clients a broker has.
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### Author:  [@Karthik\_Mahadevan](https://tradingqna.com/u/Karthik_Mahadevan)
#### Post date: [August 1, 2020, 2:21pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/3 "2020-08-01T14:21:11Z")
Thank you @Raja_123. Point taken. Any suggestions on alternative broker?
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### Author:  [@Maverick\_Trader](https://tradingqna.com/u/Maverick_Trader)
#### Post date: [August 4, 2020, 1:47am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/4 "2020-08-04T01:47:37Z")
blocking of strike prices is very limiting ?
I wanted to sell 10200 PE but I cant
Is this specific to just Zerodha or all brokerages have similair limits/restrictions ?
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [August 4, 2020, 2:07am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/5 "2020-08-04T02:07:35Z")
> [@Maverick\_Trader](#):
>
> I wanted to sell 10200 PE but I cant
There are no restrictions on Shorting Options, you can Short whichever Strike you want to.
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### Author:  [@Maverick\_Trader](https://tradingqna.com/u/Maverick_Trader)
#### Post date: [August 4, 2020, 5:41am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/6 "2020-08-04T05:41:59Z")
Thank you for your reply
But then in a Credit Spread I cant do the leg of buying
Say I short Nifty at 10200 for next week ( Can I do that today as on 04 August 2020), and then want to buy 10000 PE … can I do that too ?
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### Author:  [@Karthik\_Mahadevan](https://tradingqna.com/u/Karthik_Mahadevan)
#### Post date: [August 4, 2020, 6:07am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/8 "2020-08-04T06:07:44Z")
> [@Maverick\_Trader](#):
>
> can I do that too ?
No, you can not @Maverick_Trader. This is the single biggest limiting factor of Zerodha (although for no fault of theirs). There was discussion on moving some clients to Orbis or incorporating 2 entities under their umbrella. But does not look like it has been very effective.
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### Author:  [@MohammedFaisal](https://tradingqna.com/u/MohammedFaisal)
#### Post date: [August 4, 2020, 6:54am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/9 "2020-08-04T06:54:59Z")
> [@Maverick\_Trader](#):
>
> Say I short Nifty at 10200 for next week ( Can I do that today as on 04 August 2020), and then want to buy 10000 PE … can I do that too ?
Yes, if you have a short options positions you will be allowed to take a long option position of a different strike or expiry outside the allowed range also. This will enable you to take credit/debit, diagonal, calendar, iron condor/butterfly spreads.
However, you need to have the short position in your account already to take the long position.
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### Author:  [@Gaurav2k](https://tradingqna.com/u/Gaurav2k)
#### Post date: [August 4, 2020, 12:06pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/10 "2020-08-04T12:06:19Z")
Is this allowed in Banknifty? So, I can Sell the option first and then I will be able to buy the option which is outside the allowed range!
I didn’t knew we can do that in Zerodha!
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### Author:  [@MohammedFaisal](https://tradingqna.com/u/MohammedFaisal)
#### Post date: [August 4, 2020, 12:08pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/11 "2020-08-04T12:08:51Z")
> [@Gaurav2k](#):
>
> Is this allowed in Banknifty? So, I can Sell the option first and then I will be able to buy the option which is outside the allowed range!
Yes, allowed for both Nifty and Banknifty.
> [@Gaurav2k](#):
>
> I didn’t knew we can do that in Zerodha!
This was recently added.
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### Author:  [@manoranjan2050](https://tradingqna.com/u/manoranjan2050)
#### Post date: [August 4, 2020, 12:30pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/12 "2020-08-04T12:30:02Z")
i Also Face Same Problem … My Big Request if you Found This Solution Then Please Update Here i Will Also Move …
i’m using 5 paisa also but harecut % Is High …
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### Author:  [@Arpan](https://tradingqna.com/u/Arpan)
#### Post date: [August 4, 2020, 1:38pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/13 "2020-08-04T13:38:31Z")
It’s becoming very difficult , bnf range allowed is only 1000 point , it’s really difficult to trade in that range , it can move a 1000 point in a day …
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### Author:  [@Ravi\_Shankar](https://tradingqna.com/u/Ravi_Shankar)
#### Post date: [August 4, 2020, 1:46pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/14 "2020-08-04T13:46:21Z")
But for getting margin benefit I think we need to initiate Buy 1st I am right?
or
if we place like basket order through sensible selling strike and buying apart from allowed range (OTM) limit, will order get execute?
or need sell 1st to avail outside allowed rage buy?
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [August 4, 2020, 1:57pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/15 "2020-08-04T13:57:27Z")
You will need to Sell first to avail Buying of outside range Strikes.
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### Author:  [@Gaurav2k](https://tradingqna.com/u/Gaurav2k)
#### Post date: [August 4, 2020, 3:06pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/16 "2020-08-04T15:06:20Z")
Can we do this through MIS and convert it to NRML to avail the NRML margin benefit on hedge position?
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### Author:  [@Ravi\_Shankar](https://tradingqna.com/u/Ravi_Shankar)
#### Post date: [August 4, 2020, 4:27pm UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/17 "2020-08-04T16:27:28Z")
I think that will works
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### Author:  [@Vivek88](https://tradingqna.com/u/Vivek88)
#### Post date: [August 5, 2020, 2:02am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/18 "2020-08-05T02:02:00Z")
This is increasingly becoming a limiting factor. I dont want to move from zerodha but if this continues then I will be left with no choice but to move @nithin
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### Author:  [@MohammedFaisal](https://tradingqna.com/u/MohammedFaisal)
#### Post date: [August 5, 2020, 4:34am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/19 "2020-08-05T04:34:49Z")
> [@Gaurav2k](#):
>
> Can we do this through MIS and convert it to NRML to avail the NRML margin benefit on hedge position?
Yes.
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### Author:  [@Karthik\_Mahadevan](https://tradingqna.com/u/Karthik_Mahadevan)
#### Post date: [August 5, 2020, 9:02am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/20 "2020-08-05T09:02:56Z")
> [@manoranjan2050](#):
>
> i’m using 5 paisa also but harecut % Is High …
Does 5 paisa take more haircut than what is stipulated by exchange? For ex, what’s the haircut on liquid funds?
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### Author:  [@Karthik\_Mahadevan](https://tradingqna.com/u/Karthik_Mahadevan)
#### Post date: [August 5, 2020, 9:08am UTC](https://tradingqna.com/t/which-broker-do-option-sellers-prefer/86214/21 "2020-08-05T09:08:36Z")
> [@Vivek88](#):
>
> This is increasingly becoming a limiting factor. I dont want to move from zerodha but if this continues then I will be left with no choice but to move @nithin
Please reply @nithin @siva-reddy. This is becoming a limiting factor in an otherwise perfect platform (especially for option sellers wanting to make use of margin benefit for hedged positions). Are there any solutions being worked on in the near term?
Sell first, buy later is a cumbersome workaround.
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