Street signs: Option writers' mouse trap, Awfis space GMP at 20%, and more

Given the recent spike in volatility, brokers are advising their clients to avoid option writing or to seek an extra margin of safety

Option writers caught in the mousetrap

Amid election uncertainty and sustained selling by overseas funds, the Indian markets are experiencing wild intraday swings. For instance, the National Stock Exchange Nifty 50 fluctuated nearly 400 points on Thursday, which was also the expiry day for Nifty weekly contracts. Consequently, several Nifty option contracts saw movements of more than 10x between their highs and lows that day. As a result, many option writers — those selling put or call options without any underlying positions and intending to buy them later at a lower rate — got trapped. For option writers, the loss