Does Punch Allow OTM Options?

You can trade any strike price on Punch — ITM, ATM, or OTM — with no restrictions on distance from spot.

Written By Archit Sunat

Last updated 27 days ago

Yes. Punch allows you to trade options at any strike price, whether it is in-the-money (ITM), at-the-money (ATM), or out-of-the-money (OTM). There are no restrictions based on how far a strike is from the current spot price.

The only limitation is on illiquid contracts. If a particular contract has very low trading volume, Punch may restrict orders on it to protect you from poor fills. This applies equally to ITM and OTM strikes.