Just saw. 1 lot nifty = 13331 + MTM of 1000 = 14500. He may get about 15 points OTM. Approx 375 Rs or about 2.5%. If all the FIIs only buy options the prices will go over the roofs and they wont be able to move the index enough to make any kind of profits.
Brokers/prop desk can write options without margins as they have security deposit. If you remove the margin out. Investment of 1000-1500Rs MTM can give about 375 Rs. which is a good return. The brokers also buys for FII/retail.
Brokers/prop desk can write options without margins as they have security deposit. If you remove the margin out. Investment of 1000-1500Rs MTM can give about 375 Rs. which is a good return. The brokers also buys for FII/retail.
"Generally the small hands would quickly close their positions on profit and the big hands would hold. Also its assumed the sellers are operators and big hands"
Data suggests otherwise. Atleast in case of FII. That is my confusion