Options trading will be less attractive with comparatively less return.
Options sellers will demand more premium to compensate for the margin hike.
IV will increase. IV will increase suddenly during momentums and drop quickly too.
Options buyers will face more difficulty.
That was one of the goals for SEBI, to make option market unattractive as much as possible. With the long night hour options is going to lose momentum also. But due to less volumes. We can see the sudden increase of volatility spikes.. more frequently in night sessions.
We have to wait for the exact effect. According to report previously premium was increased automatically (by the demand from option writers) after margin hike.
Options buyers must be ready to pay for higher premium and earn less. Options will also move slower due to increased trading hours - due to add on night session.
By, increasing margin heavily SEBI had done enough. May not be so strict now on net-worth on 18th Sept meeting. IMO.
Options sellers will demand more premium to compensate for the margin hike.
IV will increase. IV will increase suddenly during momentums and drop quickly too.
Options buyers will face more difficulty.
That was one of the goals for SEBI, to make option market unattractive as much as possible. With the long night hour options is going to lose momentum also. But due to less volumes. We can see the sudden increase of volatility spikes.. more frequently in night sessions.
We have to wait for the exact effect. According to report previously premium was increased automatically (by the demand from option writers) after margin hike.
Options buyers must be ready to pay for higher premium and earn less. Options will also move slower due to increased trading hours - due to add on night session.
By, increasing margin heavily SEBI had done enough. May not be so strict now on net-worth on 18th Sept meeting. IMO.
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