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 !!