query on my options put trade

[iTrade]

Started trading options since last week. Got hold of some concepts like In the money, ATM and OTM. Also, understood to some extent intrinsic value.

I understand buying a option. But with a put I am struggling.
I bought 1 lot of option put of TATASTEEL OPT 30MAY 13 PE@300 rate: 2.90

I see that I am in loss. I am risking around 3000 here. But one question is, if stock price stays above 300, then do I need cover the trade by buying and will it result in more loss? Or at expiry should I allow to just expire?
Basically, What action should I action should I take that will keep my loss here to a minimum? Also, please explain the action motive so that I will understand buying puts better.

Thank you.

 

[aditya14]

Started trading options since last week. Got hold of some concepts like In the money, ATM and OTM. Also, understood to some extent intrinsic value.

I understand buying a option. But with a put I am struggling.
I bought 1 lot of option put of TATASTEEL OPT 30MAY 13 PE@300 rate: 2.90

I see that I am in loss. I am risking around 3000 here. But one question is, if stock price stays above 300, then do I need cover the trade by buying and will it result in more loss? Or at expiry should I allow to just expire?
Basically, What action should I action should I take that will keep my loss here to a minimum? Also, please explain the action motive so that I will understand buying puts better.

Thank you.

sell the 290 PE to reduce loss if you still think it will go below 300

 

[iTrade]

Thanks. But without buying another put, what are my options to minimize my loss? Square off tomorrow or let it expire. I know its stupid to ask such questions, but all the reading about options since last one month has confused me here.

 

[smart-trader]

Thanks. But without buying another put, what are my options to minimize my loss? Square off tomorrow or let it expire. I know its stupid to ask such questions, but all the reading about options since last one month has confused me here.

If The price stays above 300, it will be come worthless like 0.05 paise, No need to square off in this case as exchange will automatically do the needful. Let it expire

 

[DanPickUp]

Thanks. But without buying another put, what are my options to minimize my loss? Square off tomorrow or let it expire. I know its stupid to ask such questions, but all the reading about options since last one month has confused me here.

Well, at least you have spent one month to read about it. Would recommend you to do it at least an other one year.

Take care and good luck / If you have queries, just post them in your now existing thread. There are no dump questions, as the subject can be quit confusing. All option traders here know that and most of the questions will be answered. But remember: There are only dump option trades. So it is your choice what you choose: Question or dump option trades.

DanPickUp