Please note that these rules apply only if you are entering new positions. You can exit or square off any existing positions you want without being affected by these restrictions.


Every option you buy of a blocked strike needs an existing sell position to cover it. This can be an option sell or a future sell position.


1. You do not have any positions


Case 1


You are buying 5 lots of 14000 Nifty Call, which is a blocked strike. For this, you have to first sell 5 or more lots of Nifty futures or Calls or Puts in any expiry, any strike.


Case 2


You are executing a spread - 5 lots of 14000 Nifty Call buy which is a blocked strike, and 5 lots of 14200 Nifty Call sell. Here, the sell legs have to be executed first to cover the buys. This will need a higher margin though because you are selling first.


2. You have call sell positions in Nifty - 3 Lots and Put Sell - 2 Lots


Case 1


You can buy up to 5 lots of options of a blocked strike. The strike will not be blocked as your existing sell positions cover the buys.


Case 2


You are executing a spread. 5 lots of 14000 Nifty Call buy of a blocked strike, and 5 lots of 14200 Nifty Call sell. Here the buy legs can go first as the existing sell leg positions cover them.


3. You have sell positions in Nifty Call - 5 Lots and buy positions in Puts - 3 lots


You have a total of 5-3 = 2 Lots net sell. So you can buy up to 2 lots in the blocked strikes. If you need to buy more than that, you will have to sell additional legs.