Need advise regarding my option trade

Hello, can some1 please advise what to do.
I am holding nov series call option on Vedanta strike 370 bought @3.85 and currently it is @0.50

Also holding Idea 120 CE @ 1.70 currently @0.30

Any upward expected?

Unfortunately, Vedanta fell from the level you bought because it was trading near a long-term resistance level. The maximum upside I see from here, if at-all it moves to upside, is 360 levels till expiry.
Since you are already losing close to Rs 6000 in this trade, so I don’t see any point in squaring off the position for the left Rs 900.
I recommend you to wait-till expiry and miracles do happen sometimes.
Advice- Always maintain strict stop-loss.

Have a fantastic week ahead.


@tushjain00 here both options are deep OTM, my suggestion is to wait as already too much value is lost, and miracles can happen, who knows.

My general recommendation for subsequent option trading is that always buy ATM or ITM or very close to ATM options, it is a gamble to buy very far OTM options though they are available cheap. Because normally ATM/ITM options follow the underlying and you can trade as per technical charts, also time value is not a very big concern.

Hi @tushjain00,

In my opinion exiting both now and rolling over to Dec Option on one stock which you think has better perspective of growth will be a good idea than waiting till expiry.

Ex. Idea Dec 125 is available at .3
Vedanta Dec 370 at 1.9 ( Shows no trade volume for the day though! )

This definitely will increase your chance of recovering some loss than waiting for a 20% upside from current levels within Nov expiry. Also, in case the shares shoots up 20% within Nov expiry, Dec options will also rise accordingly which ensures that you are not missing probable profit from the current positions.

This would be my stand if I were at your position. You could also try investing the 2975 in some other more stock altogether as well.

All the best ! :+1:

Dude stop this. Dont waste your money. You are burning your fingers getting into wrong trades.

Idea is not a good choice. Though its a speculative bet but buying OTM unnecessarily would make u loss all your money 80% of the time.

Bhai, Im replying here for ur another post (Query on how to solve this Option Problem). I dont want to get in between tht madness out thr :rage: :rage:

Here r my thoughts:
Goal of the assignment: If today is October3 & u as an investor having 5000Bajaj Finance shares think that the stock would not cross above 1900 in this month expiry, What are all the possible strategies u wud have thought, to take advantage of? Also, Compute respective P/L.
BajajFinance lot size=500.
BajajFinance Equity=5000.
Min Derivative position Needed=10Lots

Now any investor wud involve derivatives for any of the two purpose:

Purpose1)To protect Equity position in case of steep fall to avoid getting beaten by Spouse :grin:
Strategy:-Call Sell at 1900 with the goal of exercising the option on expiry day.

Purpose2)To get short term funds for weekend party at Pub :yum:
Strategy:- MANY. One among many possible strategies is Sell Put @ 1900 & buy Put @ 1800 using the premium obtained with expectation of price between 1900 -1800.

NOTE: β€œThe person will take the derivative position based on self-purpose. But #Karma decides the outcome on the expiry day.”

Now, Calculate the P/L fr both kind of derivative strategy with the actual market data & submit ur assignment. Lets see whether u get beaten or get lucky fr weekend pub!

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But when i had purchased Idea it was trading at 108
Hence i took a bet of 120 strike price

liquidatee part of the portfolio and we can have a 2 week europe part as well :grinning:

First Strategy:

  1. Sell 1900 CE
    Profit from 1900 CE = 48 Rs
    Loss from equity postion = 121Rs

Net = 48Rs - 121 Rs = -73 Rs
Mulitply it by 5000 our your total loss = 73 *5 = 3.65L loss

  1. Selling 1900 PE and buying 1800 PE ( Definitely wont recommend . this is actually a bullish psotion )
    Loss from 1900 PE = 75.7 Rs ( 153Rs - 77.3 Rs … 153 is the settlement price and 77.3 is the 1900 PE price when sold )
    Profit from 1800 CE = 22.1 Rs ( 53Rs - 30.9Rs … 30.9Rs is the 1800 PE price when bought )
    Loss from equity postion = 121Rs

Net = -757 + 22.1 -121 = -174.6
Mulitply it by 5000 our your total loss = 1734.6 *5 = 8.73 L loss