Nifty Options

#1
Hi,

Is there a limit to how many lots you can buy at Nifty options? For instance, if a certain strike price is around Rs. 10, you can even buy 50 lots.

1) Is that allowed?
2) While selling, will there be a problem such no buyers etc.? They talk of slippage and all that, so I am worried I may buy and not be able to sell.

Some insights on this would be nice.

Thanks.
 

MSN1979

Well-Known Member
#2
Hi,

Is there a limit to how many lots you can buy at Nifty options? For instance, if a certain strike price is around Rs. 10, you can even buy 50 lots.

1) Is that allowed?
2) While selling, will there be a problem such no buyers etc.? They talk of slippage and all that, so I am worried I may buy and not be able to sell.

Some insights on this would be nice.

Thanks.
You can buy as many lots as u want, stock market has never had a problem as long as you are trading a high liquid scrip such as nifty, Make sure you buy ITM options. If price is too far away you may find it difficult to exit.


Also you need to understand Stock market never runs out of money like oceans never run out of water. The Largest ship like titanic sank in the ocean. The only thing we can do is to learn to adjust our sail.
 

DanPSup

Hedge Strategy Trader in Options and Futures
#3
You can buy as many lots as u want, stock market has never had a problem as long as you are trading a high liquid scrip such as nifty, Make sure you buy ITM options. If price is too far away you may find it difficult to exit.


Also you need to understand Stock market never runs out of money like oceans never run out of water. The Largest ship like titanic sank in the ocean. The only thing we can do is to learn to adjust our sail.
No discrediting of your post. Just an expand to it:

Itm, atm or otm option buying/selling depends all on the strategys and reasons we use or have when we buy/sell them. Many, many different ways to look at this topic. (Delta, hedge, leg in, leg out, adding, intra day trading, time, target usw).
 
#4
You can buy as many lots as u want, stock market has never had a problem as long as you are trading a high liquid scrip such as nifty, Make sure you buy ITM options. If price is too far away you may find it difficult to exit.


Also you need to understand Stock market never runs out of money like oceans never run out of water. The Largest ship like titanic sank in the ocean. The only thing we can do is to learn to adjust our sail.
Thanks. That's my biggest worry. Let's say I am able to buy. But while selling I am not able to. I'll be stuck with a loss. So I am a little wary. I am talking about quantities like 2250 etc. (75*30).
 
Last edited:

MSN1979

Well-Known Member
#5
Thanks. That's my biggest worry. Let's say I am able to buy. But while selling I am not able to. I'll be stuck with a loss. So I am a little wary. I am talking about quantities like 2250 etc. (75*30).

I think you did not read the reply properly. There are options with high volume those are usually near price. The liquidity in those options is very good and I have few friends who trade 200 lots
 

RadhuK

Well-Known Member
#6
You can buy 1000, or 1000000 contracts. No problem with that.
Later, you want to sell... You find no buyrs... No problem with that too.
Let it expire.

If it expires OTM..... its worthless. You get nothing back. (value is zero)
If it expires ITM... the exchanges is obligated to give you the price (Closing price - your strike - buy price)
eg.. you buy 1 lakh contracts NF call 11000 strike for 5rs.
Now you want sell at reasonable profit target. But no one wants to buy.
On expiry Nifty closes at 11100.
Now exchange has to return you Closing price ie 11100 minus your strike price minus your purchase price.
So you get 11100 - 11000 - 5 = 95 multiplied by 1 lakh contracts.
No problem with that. Simple hai.

But if it expires ATM... then if expires and exchange exercises it, then STT applied is different. That will screw you. One person bot thousands calls at 1r each and he did not sell it. Closing price was about 1.1. Theoritically he was in profit. but he had to pay 24 lakhs STT.
But dont worry about this , this anomaly has been corrected in the present budget.

Once this rule comes in force.. do as you like.........................
 
#7
Hi,

Is there a limit to how many lots you can buy at Nifty options? For instance, if a certain strike price is around Rs. 10, you can even buy 50 lots.

1) Is that allowed?
2) While selling, will there be a problem such no buyers etc.? They talk of slippage and all that, so I am worried I may buy and not be able to sell.

Some insights on this would be nice.

Thanks.
1.there is a limit I guess.. some % of total outstanding contracts . that's why zerodha does not allow u to buy some OTM in banknifty when they reached that limit
2. the moment u buy means some one sold to u . so if the option is ITM ( in the money ) then the seller must come to you and back back .
3. get rid all these dreams and apply proper money management. if U can't make 10k to 20k then surely making millions is not going to happen and buying lakhs of contract will remain as dream
 

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