I have bought Bank Nifty 28000 pe of 19 th nov, which was giving me loss in intraday so I carry it forward. So, what are the chances. If anybody could help whether I should hold it or take loss
you took position based on your view… how are others supposed to help you with this? everyone has their own view about the market.
Did you put SL when you bought it. If market open gap up on Monday what would you do ??
Actually I am new in options but I hedged 28000 pe with 28000 ce but i booked call option and let this put
and take it in normal. So now I am thinking it to take the loss and book it today in the muhurat session
tbh… you should first learn how options work and then only trade, options can give you impressive returns if traded properly but honestly they can destroy our funds as well if we don’t have good understanding and just do random trades. You should check varsity by zerodha you will get to learn all about options there.
Bro don’t make such mistake without knowing completely the adversity. I just share my personal experience. Just a couple of months back
I was trading around 3pm. Bought a good size of CE and within 20 mnt I was in profit of
Rs 25 K+. But in the last mnt I couldn’t exit. I was still in profit.
Now you might be thinking that’s fine. But afterwards I tried to analyse and decided if market goes opposite I would exit with a little profit or no profit. But whole night couldn’t sleep well fearing if market opens with gap down then there will be loss. Next morning at 8am when I checked the news on Moneycontrol it was like a thunder from the heaven to me. Market opened around 1.5% down and within a fraction of second my loss was 1.78 lac. There was no chance of getting out of the market before this happening. I waited for 15 mnt but there was no chance of recovery as the price was decaying with the time.
I could never imagine this much loss in a single trade. Even after a couple of months I’m still recovering my loss. But I’m not trying for any further speedy income rather slow and steady process.
Anyway, your take away from my story is just never keep any naked position open overnight without hedging until unless you’re 100% sure that market will open next day in your favour. Your first strategy was fine if market moves in any direction. But you should have closed both the positions at a time or kept open over night to take the advantage of gap up or gap down opening. However, when you have gone wrong there is no other way except you have to wait till market opens and observe market sentiment for few minutes. If it goes in your favour stay still the trend remains but if doesn’t go in your favour then exit booking loss whatever may be… Of course you can invoke the same strategy you applied yesterday if you think wise keeping existing position intact.
And btw you must read thoroughly Varsity of Zerodha. It’s full of very good content yet very lucidly described. To educate one Varsity is very helpful.
It should not be more than the paid premium… Yeah if u square off your position before the expiry… then your loss will be less than primium paid…
Yeah… That was expiry day and through out the day market stayed in sideways… So there’s no chance of recovery except exit asap otherwise I had to book another 40/50k…