Stock Options query:
Lets say Underlying stock is trading at 700, Option chain is from 600 to 900 with Rs 20 increments.
My view is stock is bullish and will go upto 780. I buy a 760 call lot for Rs 1 Premium.
Next week stock have rocketted and reached 765 Premium have crossed more than 100%. I am in profit and need to exit.
As a buyer I may or maynot excercise the right to settle the stock on expiry.
Now the stock is currently in clear uptrend with a 20’ angle, good support and bounce back so on and so forth, all qualifying parameters for an uptrend.
Now my question is will I be able to exit the call? Stock options are sparsely traded than indexes IMHO.
Anyone who have a basic idea of option would not simply buy the ITM call option right? as the stock is in clear uptrend.
Can I buy a put and squareoff my position?
Please explain best entry exit best practices for options
Thanks in advance