Circuit Limit (Dynamic Price Band)

Individual stock and index options carry their own dynamic price bands, recalculated through the session, separate from the underlying's own circuit filter. A strike hitting its band can freeze new orders at that price even while the underlying keeps moving — a real execution risk on illiquid far-OTM strikes during a fast move, distinct from the underlying itself hitting an upper or lower circuit.

The band itself is dynamic, not fixed for the day — it recalculates continuously through the session as the option's own price moves, unlike the underlying index's own circuit filter, which is typically set once and applies for the whole session.

Example: a thinly-traded far-OTM put can hit its dynamic price band during a sharp move and simply stop accepting new orders at that level for several minutes — even while the underlying index is still moving freely — a real risk for anyone trying to exit that specific strike quickly.