Nithin Kamath of Zerodha sounds alarm on options market, says real hedging is getting harder
Analysis of this story by livemint_markets · 12 Mar 2026, 10:22 AM IST (about 2 months ago)
BEARISH(90%)
sell
-62.3AI Analysis
The shift to weekly options impacts risk management for institutional and retail traders. Reduced liquidity in longer-dated options can amplify market volatility.
Trading Insight
Traders should re-evaluate their hedging strategies and consider the increased cost/difficulty of long-term protection.
Quick check: MARUTI bearish bias (oversold), TATAMOTORS bearish bias (-2.4% 1d).
Key Evidence
- •India's options market now dominated by weekly contracts.
- •This trend makes long-term hedging harder due to shrinking liquidity in longer-dated options.
- •Liquidity issues are particularly evident during market stress.
- •Risk flag: Increased counterparty risk due to illiquidity
- •Risk flag: Higher hedging costs
People in this Story
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Sources and updates
Original source: livemint_markets
Published: 12 Mar 2026, 10:22 AM IST
Last updated on Anadi News: 12 Mar 2026, 10:34 AM IST
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