What are Paired Option Contracts?

Paired options contracts are specialized contracts that allow you to take 2 positions on the same Option, of same strike price and expiration date. It comprises 2 individual legs, of a Call option and a Put option, of same strike price and expiry. The market lot and tick size of a paired option contract are same as that of the market lot of the corresponding Call option and the Put option.

When you ‘Buy’ a paired option contract, a buy Call Option and a sell Put Option is generated whereas on ‘Sell’ of a paired option contract, a sell Call Option and a buy Put Option is generated.

So if you Buy 1 lot of TCS paired option contract for strike price 3600 and expiry May 31, then a Buy Call Option for 3600 May 31 of 1 lot and a Sell Put Option for 3600 May 31 of 1 lot is generated.

Minimum 2 In-the-Money (ITM), 2 Out-of-the-Money (OTM) and 1 At-the-Money (ATM) paired option contracts are available for trading.