Comment on Option buying: The riskiest trade out there
Almost all the time folks who convert MIS to NRML are those who are losing money and don’t want to book the loss. Like I explained earlier, we are trying to figure ways to avoid that from happening. If this additional cost can nudge people from doing that mistake, we are okay with it.
We allow OTM options if you are using it to hedge your exiting short options or futures positions.