Why options trading in India have thin volume?

#1
when i try to trade options on most of listed available stocks, the volume is so thin that order never gets filled. Why is such a case when in India, compared to US option trading..
For most of strike prices I dont even get last traded price. Thus it makes difficult to trade. I use icicidirect. but can someone suggest any other broker where i can place strangle or straddle orders and the software is uptodate.
 
#2
when i try to trade options on most of listed available stocks, the volume is so thin that order never gets filled. Why is such a case when in India, compared to US option trading..
For most of strike prices I dont even get last traded price. Thus it makes difficult to trade. I use icicidirect. but can someone suggest any other broker where i can place strangle or straddle orders and the software is uptodate.
Absence of Market Makers.
 

ARMHM

Active Member
#4
when i try to trade options on most of listed available stocks, the volume is so thin that order never gets filled. Why is such a case when in India, compared to US option trading..
For most of strike prices I dont even get last traded price. Thus it makes difficult to trade. I use icicidirect. but can someone suggest any other broker where i can place strangle or straddle orders and the software is uptodate.
Our market is not as big as the USA. Apart from Nifty options and a few stock options, the market is very illiquid. Better stick to Nifty options only.
 
#5
I have following queries on options. I already posted these queries on some other thread but received only a few responses. So once again posting ( copying and pasting from there).


When I placed a buy order through religare ODIN for far month NIFTY out of money option ( 4200 call Exp. 25 December) the order was rejected even buyers and sellers were available, and when contacted the broker it was told that only current month options will be allowed to trade due to lack of liquidity for other series.

(1) Can't we buy/sell middle month and far month option contracts? Or is it a problem only with religare?

(2) I could see option quotes for the month march 09 also in my ODIN terminal. As per my understanding, in India there should be contracts only for 3 months which means as of now, October, November and December. Then how it is possible.

Regards
 

columbus

Well-Known Member
#6
I have following queries on options. I already posted these queries on some other thread but received only a few responses. So once again posting ( copying and pasting from there).


When I placed a buy order through religare ODIN for far month NIFTY out of money option ( 4200 call Exp. 25 December) the order was rejected even buyers and sellers were available, and when contacted the broker it was told that only current month options will be allowed to trade due to lack of liquidity for other series.

(1) Can't we buy/sell middle month and far month option contracts? Or is it a problem only with religare?

(2) I could see option quotes for the month march 09 also in my ODIN terminal. As per my understanding, in India there should be contracts only for 3 months which means as of now, October, November and December. Then how it is possible.

Regards
Few months back ,when NIFTY was at 4200 ,I could
see lower Nifty Puts at3800,3700,3700 etc..................
But now we do not see any lower Nifty puts
below 3200.It seems there is a problem of LIQUIDITY.
Not so sure.
 

bandlab2

Well-Known Member
#7
the problem is with your broker. last week i sold jne 2011 nifty put 5000 for 1500 rs.

if you see top 10 active calls/puts you will see one or two of 2009 also.

the reason why most brokers (including icici) dont accept far away months is they need to keep checking the margin needs fo so long, these guys are lazy. dont want to use software. also they need more turnover to get more brokerage, if you buy 2011 dec call, and yo dont do any other trade with this money, they are struck p. they want you to buy, sell, buy , sell...
 
#8
Few months back ,when NIFTY was at 4200 ,I could
see lower Nifty Puts at3800,3700,3700 etc..................
But now we do not see any lower Nifty puts
below 3200.It seems there is a problem of LIQUIDITY.
Not so sure.
Hi,

Even i am trading in Options, asked My brokerage HDFC they also told 3200 PUT is not available.checked the NSE site there also its not mentioned
i am wondering why they are not Started 3200 PUT eventhough Nifty reached that levels...

Regrads

Kumark
 

pasha

Active Member
#9
the problem is with your broker. last week i sold jne 2011 nifty put 5000 for 1500 rs.
The problem with these long term options is lack of liquidity. When you want to get out of it, there are no buyers or sellers, specially when the strike is far OTM or DITM.
 
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#10
when i try to trade options on most of listed available stocks, the volume is so thin that order never gets filled. Why is such a case when in India, compared to US option trading..
For most of strike prices I dont even get last traded price. Thus it makes difficult to trade. I use icicidirect. but can someone suggest any other broker where i can place strangle or straddle orders and the software is uptodate.
I have a question for you? Why are you interested in India stocks?