Comment on Option buying: The riskiest trade out there

Samir Palit commented on 26 Jul 2021, 07:26 PM

Hi Nithin,
On 26-July-2021 when Nifty spot was trading around 15860 I bought one lot of Nifty Aug21 future @15883. Then tried to hedge it buying one lot Nifty Dec21 15000 PE. Kite did not allow me to do so and showed an error message “Buy orders for this strike price is blocked due to OI restrictions prescribed by SEBI…”. This strike price has around 18,000 OI at the time of order execution. I did open a support ticket (#20210708205486) but did not get any other detail other than what was shown by the error message. Request you to please clarify if OI restriction will still apply for this strike price in which OI is only around 18,000 contracts.

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