The number of strike prices available for trading in options contracts for Cover and Bracket order are as mentioned in the table below.
|Product||Order Type||No. of strike prices In the money – At the money – Out of money|
|Options Index & Stocks||CO & BO||8 – 1 – 8|
You can now trade in 8 higher and 8 lower strike prices with respect to previous day’s closing spot price of the underlying. Please note that the availability of increased strike prices will depend on the liquidity of the contract.
Example: Let’s assume you wanted to trade in Nifty options CO/BO. If the closing price of Nifty Index was 8000 on Monday then the available strike prices on the next trading day (Tuesday) will be as given below.
|Previous day’s closing price||Total strike prices||Strike prices above 8000||Strike prices below 8000||At the money strike price|
Please note CO/BO are currently unavailable till further notice. Because as per the 4th and final phase of Peak Margin Reporting, the highest margin utilized by the client during the day needs to be collected and reported to exchange. Failing which margin shortage penalty shall be imposed. Know more.