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
ABCAPITAL
Proposed
30.00%
Symbol
ABFRL
Proposed
25.00%
Symbol
ACC
Proposed
25.00%
Symbol
ADANIENT
Proposed
30.00%
Symbol
ADANIPORTS
Proposed
25.00%
Symbol
AUBANK
Proposed
25.00%
Symbol
BANDHANBNK
Proposed
40.00%
Symbol
BANKBARODA
Proposed
25.00%
Symbol
BEL
Proposed
30.00%
Symbol
BERGEPAINT
Proposed
30.00%
Symbol
BHEL
Proposed
30.00%
Symbol
BIOCON
Proposed
30.00%
Symbol
BPCL
Proposed
25.00%
Symbol
BSOFT
Proposed
40.00%
Symbol
CANFINHOME
Proposed
25.00%
Symbol
CIPLA
Proposed
25.00%
Symbol
COALINDIA
Proposed
30.00%
Symbol
COFORGE
Proposed
30.00%
Symbol
CROMPTON
Proposed
25.00%
Symbol
CUB
Proposed
25.00%
Symbol
DALBHARAT
Proposed
25.00%
Symbol
DIXON
Proposed
30.00%
Symbol
DLF
Proposed
25.00%
Symbol
EICHERMOT
Proposed
25.00%
Symbol
EXIDEIND
Proposed
40.00%
Symbol
GAIL
Proposed
25.00%
Symbol
GMRINFRA
Proposed
30.00%
Symbol
GODREJPROP
Proposed
25.00%
Symbol
GRANULES
Proposed
25.00%
Symbol
HAL
Proposed
25.00%
Symbol
HCLTECH
Proposed
25.00%
Symbol
HEROMOTOCO
Proposed
25.00%
Symbol
HINDALCO
Proposed
25.00%
Symbol
HINDCOPPER
Proposed
40.00%
Symbol
HINDPETRO
Proposed
25.00%
Symbol
ICICIPRULI
Proposed
25.00%
Symbol
IDEA
Proposed
60.00%
Symbol
IEX
Proposed
30.00%
Symbol
IGL
Proposed
25.00%
Symbol
INDHOTEL
Proposed
25.00%
Symbol
INDIACEM
Proposed
25.00%
Symbol
INDUSTOWER
Proposed
40.00%
Symbol
INFY
Proposed
25.00%
Symbol
IOC
Proposed
25.00%
Symbol
IRCTC
Proposed
30.00%
Symbol
JINDALSTEL
Proposed
25.00%
Symbol
JKCEMENT
Proposed
25.00%
Symbol
JUBLFOOD
Proposed
25.00%
Symbol
KOTAKBANK
Proposed
50.00%
Symbol
L&TFH
Proposed
25.00%
Symbol
LAURUSLABS
Proposed
25.00%
Symbol
LTIM
Proposed
25.00%
Symbol
LTTS
Proposed
25.00%
Symbol
M&MFIN
Proposed
25.00%
Symbol
MANAPPURAM
Proposed
25.00%
Symbol
MCX
Proposed
25.00%
Symbol
METROPOLIS
Proposed
25.00%
Symbol
MOTHERSON
Proposed
25.00%
Symbol
MPHASIS
Proposed
30.00%
Symbol
MUTHOOTFIN
Proposed
25.00%
Symbol
NATIONALUM
Proposed
40.00%
Symbol
NAUKRI
Proposed
25.00%
Symbol
NMDC
Proposed
30.00%
Symbol
OBEROIRLTY
Proposed
25.00%
Symbol
OFSS
Proposed
40.00%
Symbol
PEL
Proposed
30.00%
Symbol
PERSISTENT
Proposed
40.00%
Symbol
PFC
Proposed
30.00%
Symbol
PIIND
Proposed
25.00%
Symbol
PNB
Proposed
25.00%
Symbol
RAMCOCEM
Proposed
25.00%
Symbol
RBLBANK
Proposed
25.00%
Symbol
RECLTD
Proposed
30.00%
Symbol
SAIL
Proposed
30.00%
Symbol
SHREECEM
Proposed
25.00%
Symbol
SIEMENS
Proposed
25.00%
Symbol
SYNGENE
Proposed
25.00%
Symbol
TATACHEM
Proposed
30.00%
Symbol
TATACOMM
Proposed
30.00%
Symbol
TATAPOWER
Proposed
30.00%
Symbol
TATASTEEL
Proposed
25.00%
Symbol
TECHM
Proposed
25.00%
Symbol
TVSMOTOR
Proposed
25.00%
Symbol
UPL
Proposed
30.00%
Symbol
VEDL
Proposed
40.00%
Symbol
VOLTAS
Proposed
30.00%
Symbol
WIPRO
Proposed
30.00%
Symbol
ZEEL
Proposed
60.00%
Symbol
ZYDUSLIFE
Proposed
25.00%
Symbol | Proposed |
---|---|
ABCAPITAL | 30.00% |
ABFRL | 25.00% |
ACC | 25.00% |
ADANIENT | 30.00% |
ADANIPORTS | 25.00% |
AUBANK | 25.00% |
BANDHANBNK | 40.00% |
BANKBARODA | 25.00% |
BEL | 30.00% |
BERGEPAINT | 30.00% |
BHEL | 30.00% |
BIOCON | 30.00% |
BPCL | 25.00% |
BSOFT | 40.00% |
CANFINHOME | 25.00% |
CIPLA | 25.00% |
COALINDIA | 30.00% |
COFORGE | 30.00% |
CROMPTON | 25.00% |
CUB | 25.00% |
DALBHARAT | 25.00% |
DIXON | 30.00% |
DLF | 25.00% |
EICHERMOT | 25.00% |
EXIDEIND | 40.00% |
GAIL | 25.00% |
GMRINFRA | 30.00% |
GODREJPROP | 25.00% |
GRANULES | 25.00% |
HAL | 25.00% |
HCLTECH | 25.00% |
HEROMOTOCO | 25.00% |
HINDALCO | 25.00% |
HINDCOPPER | 40.00% |
HINDPETRO | 25.00% |
ICICIPRULI | 25.00% |
IDEA | 60.00% |
IEX | 30.00% |
IGL | 25.00% |
INDHOTEL | 25.00% |
INDIACEM | 25.00% |
INDUSTOWER | 40.00% |
INFY | 25.00% |
IOC | 25.00% |
IRCTC | 30.00% |
JINDALSTEL | 25.00% |
JKCEMENT | 25.00% |
JUBLFOOD | 25.00% |
KOTAKBANK | 50.00% |
L&TFH | 25.00% |
LAURUSLABS | 25.00% |
LTIM | 25.00% |
LTTS | 25.00% |
M&MFIN | 25.00% |
MANAPPURAM | 25.00% |
MCX | 25.00% |
METROPOLIS | 25.00% |
MOTHERSON | 25.00% |
MPHASIS | 30.00% |
MUTHOOTFIN | 25.00% |
NATIONALUM | 40.00% |
NAUKRI | 25.00% |
NMDC | 30.00% |
OBEROIRLTY | 25.00% |
OFSS | 40.00% |
PEL | 30.00% |
PERSISTENT | 40.00% |
PFC | 30.00% |
PIIND | 25.00% |
PNB | 25.00% |
RAMCOCEM | 25.00% |
RBLBANK | 25.00% |
RECLTD | 30.00% |
SAIL | 30.00% |
SHREECEM | 25.00% |
SIEMENS | 25.00% |
SYNGENE | 25.00% |
TATACHEM | 30.00% |
TATACOMM | 30.00% |
TATAPOWER | 30.00% |
TATASTEEL | 25.00% |
TECHM | 25.00% |
TVSMOTOR | 25.00% |
UPL | 30.00% |
VEDL | 40.00% |
VOLTAS | 30.00% |
WIPRO | 30.00% |
ZEEL | 60.00% |
ZYDUSLIFE | 25.00% |
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.