Trading Far OTM Options on FYERS

Is trading in Far OTM options possible on FYERS?

Yes, we offer a broad strike price range, enabling you to Buy/Sell Far Out of The Money (OTM) Options Contracts.

Options Buying:
  1. Index Options: You can purchase OTM Options within a range of 20% from the Last Traded Price (LTP).
  2. Stock Options: Likewise, for stocks, the range for buying OTM Options extends up to 20% from the LTP.
For clarity, if the Nifty Index is currently pegged at 15000 (LTP) with a given 20% range restriction translating to 3000 (20% of 15000), your tradeable strike price should fall within the 12000 – 18000 bracket for any option expiry.

Options Selling:
  1. Index Options: Selling OTM Options for Indices comes with no specific strike price boundary.
  2. Stock Options: However, a 30% range is set for selling OTM stock options.
Points to Note:
  1. Deep OTM options tend to be illiquid due to their low trading volumes. Hence, we advise using Limit Orders over Market Orders.
  2. Owing to the low trading volumes, Market Orders are restricted for Stock Options.

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