Can I buy and sell Far OTM Options in FYERS?

Can I buy and sell Far OTM Options in FYERS?

Yes, We provide you a wider strike price range for options trading and you can Buy/Sell Far Out of The Money (OTM) Options Contracts.

Options Buying

  • Index Options – You can Buy OTM Options up to a range of 20% from the LTP.
  • Stock Options – You can Buy OTM Options Strike prices up to a range of 20% from the LTP.

For Instance, Nifty Index is currently trading at 15000 (LTP) and as we mentioned earlier, the range restriction is 20% which comes to 3000 (15000*20%). So, you can trade in the strike price range of 3000 from the LTP of 15000 i.e., You can select the strike price between the range of 12000 – 18000 to buy the options of any expiry.

Options Selling

  • Index Options – There is no Strike price range restriction to Sell OTM Options for Indices.
  • Stock Options – A strike range of 30% is applicable for Selling OTM stock options.

Note: 

  1. Deep OTM options are mostly illiquid (Low Volumes). So, we suggest you use Limit Orders instead of Market Orders.
  2. Due to low volumes, Market Orders are blocked for Stock Options.

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