A family member has purchased 3000 Shares of PNB @50 Rs. can he do something with option of futures?

@ksksat @Sensibull @nithin @maddy_Des
As you know price for PNB is down from 50 Rs. …

He has not put any stop loss …and he has used margin money so apart from booking loss
is there any other way he can avoid or reduce loss …(He can not hold for more than 3 months from now)

I mean using futures or options strategy?
If yes please explain.

No one really knows the future. For crying out loud…

Since stock is 3000 and FnO lot is 8300 therefore using options could be difficult in it.

If you are certain of more fall you can buy ATM puts which has roughly a delta of 0.5 so a 8300 lot size would be equal to 4150 which is approximately your holding size. However make sure to buy from next month puts as expiry is on 28th may so u can start from june month puts and rollover before respective month expiry!

Thus, opens the can of experts. @curiousvi.
If you ask for opinions, it ll invite loads and loads. Commonsense says there is no certain hack.

The best instead of the blind leading the blind, get out if the position is not comfortable.

If it was my money, I ld not ask opinions of strangers.

In the drama of avoiding losses, people have added more losses. Why when it comes to market, people lack commonsense!

People ll bargain for 1 kg of onion but…

1 Like

Covered calls is probably the best way. But yeah, since lot size is 8300 and your friend holds 3000, it is a little tricky. But assuming u keep writing calls every month, you can recover some money every month on the holding.

But the tougher and maybe the right decision is to exit the stock and maybe buy shares in a better bank. That would probably be the right play, but tougher because of

1 Like

@curiousvi first of all please explain margin money part. Which broker? Icici direct has margin equity cash segment where one can hold position for a year paying daily interest of 0.0049 percent on the purchase value.

Did ur friend use something like that or he bought any loan and invested that?

Ask him to calculate m2m loss. If he can arrange funds best is to take delivery. It is not wise to sell this season when banknifty is trading at huge discount.

I dont know much in details but he has axis direct brokerage account and bank account.