The Dynamic OI Nightmare

download - 2020-07-23T131900.780
This shows all positions correctly.

You can see We shorted 22700PE this week’s and bought 22700PE next week’s. This is called a calendar spread. https://unofficed.com/lessons/calendar-spread/

It also ended in good profit only.

But the problem happens when just one leg gets executed and another gets rejected. Do note - When we took the position 22700 was not deep OTM or ATM.

Zerodha dynamically blocks the OI. Because of our large customer base, We trigger that ourselves sometimes. Why am I not able to place Bank Nifty, Nifty option orders for certain strike prices?

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The 22700PE you see here is taken intraday! So, it missed selling this week’s sell position but it executed in 80% accounts from the same code (The accounts had margin all time). Now, We have a tight margin of 150K. 3K difference is huge in MTM. Right?

It immediately creates an imbalance.

PS: Position was greek based and was taken at 15:28:00 so it was very hard to perform cross-check that time. Anyways it is noteworthy!

Execution is totally different ball game than the strategy itself.

Imbalance -

  • Former account You can risk the profit.
  • Later account You can not risk anything but You also need to cut things sharp to end the week in profitable note.
  • Margin difference increases exponentially on the end.