If you are option writer, please explain the answer for this question

General
1

How do we set stop loss while selling the option? For example, if the option premium is Rs 100, would able to specify if the price comes to 105 then buy back? or something else. I appreciate very good explanation on this, Thanks

1 Like
2

One good way to place a stoploss is based on volatility of the stock. Have a look at this…

http://tradingqna.com/4691/what-is-the-ideal-stoploss-for-banknifty-terms-fixed-points

3

You can use a buy stop loss order to do exactly what you want.

Refer this tutorial (Specific to Zerodha): http://zerodha.com/z-connect/tradezerodha/zerodha-trader-software-version/stop-loss-orders-limit-market