Comment on Option buying: The riskiest trade out there

Rahul commented on 01 Jul 2021, 08:48 PM

It’s mentioned that buying OTM options is allowed if it used as a hedge, but in some strategies like Bear call spread one needs to Buy further OTM first and Sell OTM later in order to get the reduced margin benefit, but system doesn’t allow that, even if placed through Basket order. So higher margin is required.

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