Fixing Stop Loss for Nifty Options -- Calculation based on Index/ Nifty future

General
1

Consider below imaginary scenario :

Imagine Nifty Index at 9000 (Nifty Future Mar 9050 ),consider according to my strategy, it will move up another 100 points in coming days to 9100 ( Nifty Future Mar 9143 ).

As Delivery of 1 lot Nifty costs 35k, I prefer Call options as its cheap. For example, 9200CE 1 lot @ Rs.70.

Question :

If I trade on Nifty Future my stoploss 9010 (Index value SL 8960). but how can I fix stoploss for 9200CE based on Index or fut values ? Meaning stoploss like @Rs.XX ( how to arrive/calculate this XX value based on index/future ?)

Is there any method / strategy to calculate stoploss based on Index/future values…

Watching Nifty and future values continously till it hits (9010 or 8960) and exiting my 9200CE based on that - I dont prefer.

I want to calculate my SL value in options in advance.

Thank you in Advance…Hoping Good Replies !!

2

You can check this link to calculate the option values in advance. 

3

Hi,

You set your stop loss value using Black & Scholes option calculator for option trade. The B&S calculator indicate the all option greeks (Delta, Gamma, Vega, Theta) values for both the call & put option price. You calculate approximately your stop-loss through the delta value.

Thank you.

4

Is there an easy way around?..also, the calc given in the link is approx and not accurate…any other source pls?

5

Yes, I agree with Shrav

6

When trading in options you’ve to set the SL as per the chart of Nifty Spot or Futures.
When it is a trend call you may fix a stop loss as per the Fibonacci levels or pivot low on Nifty Futures.

If scalping for which I give Nifty Live Commentary then you yourself if a stop loss.