What happened to polycab suddenly? can someone explain it and how to avoid or identify these scenarios. I had bought 2900 ce option on Friday and in no time it went down 10 percent.
You should exit whatever price you get because it will go to zero most likely as expiry is near.Your strike price is out of money.
No i bought for may expiry
Then use your due diligence. Regardless of series of expiry if you have naked option and that too out of money it will be hard to get your price back.
Always place stop loss respect risk.We can only control our risk rest is beyond our control .
Market has no idea of our behaviour no control on our action and no regard of our financial welfare.
Do not make any trades based on my answer
- You bought far OTM option so this was very well expected.
- There is no way that Polycab will reach 2900 levels so your option will be coming down to 2-3rs within 5 trading session.
- You should first learn to indentify atleast support and resistence levels and once it crosses resistance level then only can you think of buying far OTM option.
- I’m expecting the stock to go down, to 2350 levels very soon.
Let me ask you couple of questions…
- What was the thinking behind taking this trade ?
- What was the entry point, target and stop loss ?