OI Restriction Law

• Fri, Feb 17, 2023
• One-minute read

• Total OTM you can buy should be equal to the Total options sold.
• Today I was confused why I couldn’t buy hedge for options sold. ie I had sold 300 ce but bought only 250 ce hedge. But when i place +50 order it was showing you cannot buy OTM due to OI restriction.
• I was perplexed. I had bought 300, hedged only 250 then why can’t I buy 50 more.
• The problem was that I had bought one extra hedge in PE.
• In PE I bought 250 hedge for 200 pe only.
• Hence OI restriction.
• So we have to calculate all pe & se sold = all otm hedges pe & ce.