Which brokers give Highest Exposures for POSITIONAL Option Writers?

headstrong007

----- Full-Time ----- Day-Trader
#1
Please list out and compare all brokers who give Highest Exposures for POSITIONAL Option Writers especially for Bank Nifty Weekly Options?

I know Wisdom & Astha. But anyone know brokers with similar or better Exposures? :D

Trusted brokers who don't change margin requirement frequently. Especially to write out of the money options weekly options positionally about Rs 20-30..

Brokers may not be a discount broker but Exposures for positional Bank Nifty Weekly Option writers must be highest. No problem up to Rs 100/lot brokerage (can sacrifice 2.5 pt).
 

headstrong007

----- Full-Time ----- Day-Trader
#5
Thanks prince for info..

Usually out of the money bank nifty weekly options of Rs 20-30 is already 300-400 pt away on prev Thurs day/Fri day (5-6 days b4 exp).
So even if brokers take 200pt SL for pro traders (who hv profitable track record for long). Still, they can give maximum exposure about Rs 7500-8000 per lot for such out of the money carry forward positions. Under 10,000 per lot is reasonable with high volume writing. IMO..

Intraday traders big capital remain unused for overnight. Sometimes there are huge opportunities to make extra profit by writing out of the money options overnight, even writing both sides, when the market in consolidation/ranges...

If anyone used such brokers with reasonable brokerage & lower overnight margin can share. Share the reqd margin also...

I heard about India infoline, Globecapital for personal deals... OTM options writing is less risky so exposure must be highest there than ITM options...
 
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headstrong007

----- Full-Time ----- Day-Trader
#7
The personal deal means when they are convinced that risk is low with high leverage with a particular trader....with trading records with them or from ledger details from some other brokers...that consistency is there and no large draw down, quick payment if any margin calls etc.
When they assure that risk is less and trading capital is also good (usually min 5-10 lakhs or more), they release high exposure for options writing.

But it is better if there is already high leverage for general customers, then a personal deal can do a lot better...
 

abhay.fintech

Well-Known Member
#8
I am a POSITIONAL options writer and I need to keep my funds with the broker for the full month till expiry. I usually write 25 lots of Nifty option every month and keep them till expiry. I need to fund my account with almost 10 lakh to do this. (40K per lot).

Is it foolish to keep a 10 lakh account with a discount broker? How big an account do you have with your discount broker?

Am I sensible to do this with a discount broker (In terms of capital safety)?
 

abhay.fintech

Well-Known Member
#9
@headstrong :

How can a POSITIONAL option writer get overnight exposure? As far as I know, as soon as we carry over the position, we need to pay full margin with all the brokers.. (and even keep 50% margin as cash equivalent/liquibees etc) to fulfill 50:50 cash to collateral margin requirement.

Correct me if I am wrong? I have been writing OTM nifty options (positional, atleast keeping them for 35 days) from past one year by paying FULL margin (40K per lot for Nifty options). If I write 25 Nifty OTM options, I need to maintain a 10 Lakh account (colalteral+cash) with my current discount broker.

Am I doing something wrong? (Is there a better way to do this with less capital)?
 

headstrong007

----- Full-Time ----- Day-Trader
#10
Probably there is no as such overnight mininum fixed span margin for otm option writing, like 5% in futures.
It varies broker to broker.. already Aatha, Wisdom already have overnight options margin as low as 26k-28k.

And...I am talking about personal deals with prop trading brokerage firms. They make such deal with high volume traders. May be high intraday volume for selling options can give u such extra exposure for overnight positions also.. They share their own money for trading(and other clients unused money) to give high leverage. There are ways for doing it legally.

For such personal deals overnight margin is much lower..but first they ensure that even with Rs 3-5 per lot brokerage they get very high monthly brokerage by high trading volumes...

Prop trading firms like such traders for personal deals...who trades with high volume..like traders who convert nrml to mis for intraday to realese more margin to write more intraday options or trading with futures and then before eod convert again mis to nrml..
They just need to ensure high brokerage by high trading volumes and they also see past ledger record of consistency for such trader..

I am searching for such a good and trusted broker who make such deal.
 

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