There is an important update regarding options trading on our platforms. In this article, we will cover the key changes that we have implemented to provide better risk control in options trading. These changes are being implemented due to concerns about illiquidity, as they can cause losses to the clients.
We have disabled options strikes that are far away from the underlying price for all segments as explained below:
Underlying
Equity Index Options
Allowed strike range from underlying price
15%
Underlying
Equity Stock Options
Allowed strike range from underlying price
20% (with below exceptions)
Underlying
Currency Options
Allowed strike range from underlying price
8%
Underlying
Commodity Options
Allowed strike range from underlying price
15% (with below exceptions)
| Underlying | Allowed strike range from underlying price |
|---|---|
| Equity Index Options | 15% |
| Equity Stock Options | 20% (with below exceptions) |
| Currency Options | 8% |
| Commodity Options | 15% (with below exceptions) |
Exception for Equity stock options: The below stocks fall under the exception criteria of of 20% strike range
Symbol
ADANIENT
Range
30%
Symbol
BANDHANBNK
Range
30%
Symbol
BHEL
Range
30%
Symbol
BIOCON
Range
30%
Symbol
BOSCHLTD
Range
15%
Symbol
COALINDIA
Range
30%
Symbol
COLPAL
Range
15%
Symbol
DIXON
Range
30%
Symbol
GMRINFRA
Range
30%
Symbol
ICICIBANK
Range
15%
Symbol
ICICIGI
Range
15%
Symbol
IDEA
Range
60%
Symbol
IEX
Range
30%
Symbol
PFC
Range
30%
Symbol
RECLTD
Range
30%
Symbol
SBILIFE
Range
15%
Symbol
TATAPOWER
Range
30%
Symbol
TCS
Range
15%
Symbol
TORNTPHARM
Range
15%
Symbol
UPL
Range
30%
Symbol
ZEEL
Range
60%
Symbol
IRCTC
Range
30%
| Symbol | Range |
|---|---|
| ADANIENT | 30% |
| BANDHANBNK | 30% |
| BHEL | 30% |
| BIOCON | 30% |
| BOSCHLTD | 15% |
| COALINDIA | 30% |
| COLPAL | 15% |
| DIXON | 30% |
| GMRINFRA | 30% |
| ICICIBANK | 15% |
| ICICIGI | 15% |
| IDEA | 60% |
| IEX | 30% |
| PFC | 30% |
| RECLTD | 30% |
| SBILIFE | 15% |
| TATAPOWER | 30% |
| TCS | 15% |
| TORNTPHARM | 15% |
| UPL | 30% |
| ZEEL | 60% |
| IRCTC | 30% |
Exception for Commodity Options: The below scrips fall under the exception criteria of 15% strike range
Scrip
Crude Oil
Strike Range
30%
Scrip
Natural Gas
Strike Range
40%
| Scrip | Strike Range |
|---|---|
| Crude Oil | 30% |
| Natural Gas | 40% |
Let’s understand with the help of an example:
Example: Index (With the strike range of 15%) Assuming the current market price of Nifty is 20000. With a 15% strike range, you can trade in option strikes within the range of 17000 to 23000. Note: You can square off your existing open positions regardless of the allowed strike range criteria.
Strikes with Zero interest: What’s the change?
We've also made a change regarding strikes with zero open interest. These strikes will be disabled for placing orders on non-expiry days but will remain available for trading on expiry days.
Let’s understand this also with the help of an example:
Example: If the Open Interest (OI) of 19500 Nifty CE 23rd Oct 2023 as of 21st Sept 2023 is 0, the strike will not be allowed for the next trading day, i.e., 22nd Sept 2023.
These changes are part of our ongoing commitment to provide a safer, more efficient, and user-focused trading environment. By limiting strike ranges, our goal is to offer you a risk-optimized trading experience.
As always, we value your feedback and are here to address your questions. Please reach out to our support team for further clarification on these updates. We're dedicated to supporting your trading journey and helping you achieve your goals.
Happy and successful trading!
Disclaimer: Futures and Options (derivatives): Derivatives are a sophisticated investment device. The investor is requested to take into consideration all the risk factors before actually trading in derivative contracts.
Risk Disclosure on Derivatives
As per a SEBI study dated 25 Jan 2023
9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses. On an average, loss makers registered net trading loss close to ₹ 50,000. Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs. Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.