17.11.09
just hold your puts
yesterday a trade was shared of buying 5100 nifty put and alternately selling 4900 nifty put in options.we paid 110 -38 total 72rs.now today 5100 is at some 87 rs and 4900 is at 21 rs total 66rs we are in loss of 6 rs right now .just hold your puts tightly and u can square it off tommorow before market closes .markets are testing patience of all the shorters and as expiry is very near the markets are holding up so that all the premium can be eaten up of calls and puts.that is the main reason why i had asked to sell put also so that the premium decay of the sold put will reduce our loss
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3 comments:
Hello sir, i am new joinee to your site. Sir my stress is rising day by day as expiry is approaching nearby. Sir, i am holding 1 lot of 4900 put at 102, 1 lot of 5000 put at 125 and today i bought 5100 put at 108. All three in losses. Just fearing whether all three would expire out of money or give me super profits. Today closing 4900 put at 21, 5000 at 45 and 5100 at 85. Plz sir advice so as to minimize my losses.
vinesh you should follow strict stop loss if you are trading naked options.as time decay can eat all your premium .u just cannot go and trade blindly u have to set your own rules .now suppose by tommorow if nifty closes below 4980 then close your 4900 put and carry the rest and if nifty closes above 5000 just close all the trades and start again with proper plan .
with proper planning and management you can make good money over a period of time
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