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Asked a question 2 years ago

Are all nifty 100 stock options liquid enough for near itm intraday trade ?how much percentage slippage is considered ok in stock options to be considered liquid for intraday trade ?

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No, not all NIFTY 50 or 100 stock options are liquid. This poses extreme difficulty in trading options on those stocks specially on day trading. Because of this, entering and exiting trade at an intended price becomes very difficult. Not enough liquidity simply means there is not large volume of trading and there are not significant number of buyers and sellers available for that stock, specially in stock options segment.

Even on positional basis, the movement of prices can be so lethal that Stoplosses may have got hit before opening itself. So, risk management is another challenge there, even if your view is correct.

The difference between the intended price and actual trade execution price is known as slippage. In my opinion,  a maximum slippage of 2% may be acceptable. What it means is that, if you want to enter a trade at 100 Rs. per unit, it should not get executed at more than 102 Rs. per unit.

No all the nifty 100 stocks are not liquid , better you can find the stocks with latest good turnover from nse site in options segment . Even if the liquidity is less than normal then prefer having a max slippage or 1-2% or you will be missing out some of your profits . If you're getting more slippage than that , it is better to avoid the stock because low liquidity may lead to making the exit hard too . Hope it helps 

Sumeet Kumar Roy
Retail trader (Option Buyer)

XS04669 

NO, Not all nifty 100 Stocks is liquid enough for near ITM Trade. 

Stocks that tends to move 3% or more per day in nifty 100 have consistent large intraday moves or having enough liquid to trade for near ITM. 

Are all nifty 100 stock options liquid enough for near itm intraday trade ?how much percentage slippage is considered ok in  stock options to be considered liquid for intraday trade ?

List of stock which has liquidity in options

Are all nifty 100 stock options liquid enough for near itm intraday trade ?how much percentage slippage is considered ok in  stock options to be considered liquid for intraday trade ?

Depends on stock selected.