Options and futures

I have buyed 24000 shares of Sbi Feb 290 CE at 1.5 but now it is trading at 0.3.I am having an overall loss of 28000 what to do next.

hello trader,

Seems like you have entered a trade without an exit plan.

Considering you have made the entry on your own, Time to take on some responsibility and make an exit decision yourself.

1 Like


For the month of February, 280 has been the resistance for SBIN so far. It has tested the level of 280 twice but failed to cross it or stay at those levels.

Also, as the option moves closer to expiry, the time value of the option will keep reducing and will eventually become 0 at expiry. The intrinsic value will have more weightage as the option moves towards expiry. For your 290 Call option to reach the value 1.5 and above, SBIN has to trade above 291.50 on or before expiry day.

SBI is currently trading at 269. There are 3 days left to expiry. For your option to return your invested money, SBIN has to move up 8.4% from the current levels. Unless there is strong news favouring SBIN or there is FII buying, this is highly unlikely to happen.

Currently your option is still worth Rs.6000. You can make a decision as to whether you still want to hold it or take this money.

1 Like

As long as I was trading in options I was only loosing money.

After stopping I am able to make profits.