Comment on Option buying: The riskiest trade out there

Adi commented on 04 Jul 2021, 04:27 PM

Well, clearly Zerodha is not a platform for HNI traders like me. I have moved my 25L+ account to another broker. Reasons are as follows:-

I trade options strategies via Sensibull. Mostly IC, IF, ratios and Calendar. One of the days Zerodha stopped allowing me to buy options for hedging anything outside 250 (15750-16000) range which meant that I had to exit out of my strangle because I could not not convert it to IC. So I disagree with Mr. Kamat’s statement that he is doing this for protecting of saving investment. If I am unable to Hedge then it is actually putting unlimited risk in my strangle.

I would also buy intraday options for adjustments to Vega that I might need to carry overnight. Do you really think that if I know how to adjust for volatility I do not the effect of theta decay. I do. It is the cost of risk management.

Assuming that all of us are children and don’t know what we are doing is not only preachy but rather a huge assumption.

I am sad to go. Zerodha, without a doubt, was the best user interface among all brokers. The integration with Sensibull was fantastic. I would have preferred if they had an HNI tier that remained unless I lost 50% of the capital where there are no restrictions.

Zerodha will eventually become an option buyers-only platform since all HNI friends I have in our group have left or are leaving. Once the Covid ends you will find that the actual traders have left the platform. People will go back to their jobs, the volumes will drop and you would have lost traders like me who trade in 100’s of lots in the day on the option strategy side and would have happily paid higher brokerage gone

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