Vijay, Please tell me how to overcome this problem of placing wrong orders. I also suffer from it many times. Latest has been yesterday where instead of placing trigger + sell limit order, I ended up placing buy order and realised at the end of day that instead of being stopped out, I am holding double long quantities.
Coming to your trade of short 5100 Put. I think, it has already seen the worst price of 600 or so when market touched the low yesterday. It seems, that short term trend is up for now.
you can adopt many complex approaches to cut the loss.
1) and easiest of all is keep trailing stoploss.. as mkt moves up, keep moving SL to next higher point .. and if mkt reverses, then your stop will take u out.
2) Covert this into a spread by buying say 5000/4900 put.. but in that case you will be blocking some extra cash, big marging for this short position and extra brokerage.
You will not be able to turn it into a profitable position.
3) Sell call at 4600 and convert this into a short 4600 - 5100 reverse strangle with committed value of 5100-4600 = 500 pts. you gain will be the premium that u will collect from put and call - 500 pts..It is unlikely that you will be able to cover the complete loss of 500 with this approach. Maybe you will be able to minimise the loss.
Of all the above, if I were you, I would go for 1st simple option. As you are active trader and u know when mkt has changed the direction to down again, then u can cut the position. Depending on your platform, you can draw the chart of option price and use the pivot levels on option price that chart for rough guidence to cut the position.
Though option price don't follow charts (and I have been against using option chart to make tradind decision).. but off late I am spending time on short term price behaviour based on option price chart.. and think that for intraday to 2 day timeframe, it can work with fair approximation (specailly when expiry is far away).
And as a stock chart reader, it might make our job easy to trade option using option chart. Just follow PH/PL / Trend line etc and decide to entry/exit points.
Hope this helps.
happy trading.