If you are a option seller you must be aware of how the far OTM option strike is important to manage the risk and reward for your option trading strategy.
Many brokers blocks the scripts with the low volume or low open interest, as a result many brokers blocks the far OTM looking into the OI and volume. Liquidity plays an important role when it comes for the option selling in case there is low liquidity there is a possibility that one will not be able to buy or sell the option of the strike. The brokers blocks these strikes in order to avoid any potential losses that can be make by the traders. This is done for the benefit of the traders but also if a trader is aware of such risk and is ready to take such risk there is no point in blocking the strike.
Many brokers still allows to trade on far OTM strike price. One of the broker is tradingbells. I have been using this broker and I sells the far OTM calls and far OTM puts from this and I didnt faced any problem in it.
Many times there are liquidity issue but that is totally different problem.
If you want to join the tradingbells you can use my referral for the same.
CLICK here to visit the signup page, I feel this is the best broker for the option trading and one can use the options for the full potential.
Do let me know if you feel otherwise in the comments sections and if you are using the tradingbell do share your experience.
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