@siva
I read here : OTM options buy
that the restrictions are no longer there from last week ? Is it correct? Can we buy MIS OTM options without range limitation?
Yes, on mis. But one can’t convert them to nrml.
Thats perfectly fine ! I was just looking for MIS. You made my day 
So now there is no range restriction on OTM buy ?
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I already replied the same above. Yes, no restrictions for MIS.
So if I want to use leverage for shorting Nifty futures - can the following be done and will Zerodha allow OTM option beyond the range allowed for NRML
- Short one lot Nifty future - Give full margin of 1.05 Lakhs - NRML Trade
- Buy 1 lot 17100 CE - Will this trade of purchase of 17100 go through ? This reduces margin to 45K
How about purchasing 2 Lots of 17100 - which reduces the margin further by another 50% to 23K - or is there 1:1 mapping to lots allowed
Allowed only 1:1 for OTM options, no restriction to buy any quantity within the limits.
Hi.
i have SOLD NIFTY OCT 19000CE today. for hedging this I have tried to Buy 19300CE same Qty. however Nudge has not allowed to take this trade. i have forcefully closed my 19000CE sell trade. I have tried this 3 times, all the time same error appears.
also, I have tried this with my friend’s account, and to my surprise its working fine for him, he is able to take same trades. please advise of any problem with my account ?
Ticket no. #20211018834702
They consider net-position not individual position. You have bought 19300 CE already.
According to net position principle, you can hedge a position by buying some option only when you have a naked short position. This is the reason I think.
Hi. i didn’t buy 19300CE. Zerodha is not allowing to buy…
Error rejected screenshot is of my Account.
The screenshot which is showing as 19300 is pertaining to my friend, it is allowing for him. but not mine.
Please support. @siva
Dear, Zerodha allows far OTM only for Intraday. Your orders were NRML.
Since your friend has a short positions in 19000 CE, he can buy strikes outside the range for hedged(Upto the short quantity).
I believe you were trying to buy the long 19300 CE directly.
Also under MIS, there are no range restrictions as the position is closed on the same day.
I have tried to take 19000CE Buy only after Selling 19000CE, yet the same error has come, Later I have squared off 19000CE Sell. please refer to screenshots.-
In fact, I have only tried in my friend’s account just to check whether it works or not. to my surprise order went through in his account.
please advice.
You may see 19000CE sold option in black background. that’s my account.
Some brokers allows trading in OTM/Far OTM for delivery (NRML) too !
Zerodha allows OTM/Far OTM for INTRADAY (MIS) only.
For getting advantage of hedging for margin, you have to trade Buy side first (MIS).
While exiting, you have to exit from your Sell side first.
In ZERODHA, all orders should be for INTRADAY (MIS).
Every brokerage firm has a restriction in terms of maximum Open interest (OI) or total positions that can be taken across futures and options of any scrip, across all its customers. This is 15% of the overall market OI. We are the largest retail brokerage firm in India and unfortunately, this has also meant that we have been hitting this OI limit set per broker for Nifty and Banknifty. Due to this, we are forced to restrict trading buying options in certain strikes, mostly out of the money options (OTM).
Hi Zerodha please advise on the following
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Index MIS does all strikes allowed for Option Buying and Selling CE and PE (even deep OTM options)?
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Index NRML all strikes are not allowed for Option Buying CE and PE (for deep OTM once has to sell first then buy and then can exit the sell leg that way the buy will remain intact)?
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Index NRML all strikes allowed for Option Selling CE and PE (even deep OTM Options)?
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Index MIS - does for all strikes including deep OTM CE and PE- Market Order for Entry and Stop Loss allowed or not?
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Index NRML- does for all strikes including deep OTM CE and PE - Market Order for Entry and Stop Loss allowed or not?
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Stocks MIS does all strikes are allowed for Option Buying and Selling CE and PE (even deep OTM options)?
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Stocks NRML does all strikes are allowed for Option Buying and Selling CE and PE (even deep OTM options)?
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Stocks MIS - does for all strikes including deep OTM CE and PE- Market Order for Entry and Stop Loss allowed or not?
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Stocks NRML- does for all strikes including deep OTM CE and PE - Market Order for Entry and Stop Loss allowed or not?
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GTT will work on both Futures and Options in NRML for index and stocks?
Yes, in MIS you can trade in all strikes.
Yes.
No restrictions on selling options, you can do so at any strike price.
Market orders are allowed for current week and current month expires. For all other expires, you’ll have to use limit orders. You can check out more details here.
Stoploss Market orders (SL-M) are blocked due to the risk of freak trades. You can use Stoploss (SL) orders like an SL-M order. Here’s how.
Yes
Yes.
Market orders are not allowed for Stock Options.
Yes.
Thanks a lot Zerodha , just few last queries please advise?
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Option Buy position when squared up - the funds received same day during trading session can it be used for Option Buying MIS & NRML , Option Selling MIS & NRML, Future Long/Short MIS & NRML, CNC without any penalties ?
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Option Sell when squared up - the funds received same day during trading session can it be used for Option Buying MIS & NRML , Option Selling MIS & NRML, Future Long/Short MIS & NRML, CNC without any penalties ?
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Futures Long/Short when squared up - the funds received same day during trading session can it be used for Option Buying MIS & NRML , Option Selling MIS & NRML, Future Long/Short MIS & NRML, CNC without any penalties ?
Funds received from selling options can only be used for buying options on T-Day. For all other trades you can use it from T+1 day.
Margins released after squaring-off short option and futures position can be used immediately for other trades.
Hi,
Can someone at zerodha or @siva again confirm of buying OTM strikes for NRML is allowed if it’s hedging a short position.
I had short Banknifty 32500 pe for May expiry. I tried to hedge that position by buying Banknifty 32400 pe May expiry, but order is rejected citing strike price is outside range.
As per various tweets posted by zerodha on twitter and support forum, buying options of any strike is allowed if it’s hedging a naked position, then why is my order rejected.
Pls see attached screenshot of the short order and rejection of long order
