Stocks FnO positional trading

[prabhsingh]

Exactly... the position dies not mainly becoz of red candle but the red line goes below blue... The red line will never come below blue line in the trending market as you can check in history. Also 2 consecutive red candle when we are long means something is definitly not correct and obviously we can see the price of LT going down with 1332 today.

Correct me if am wrong but at close look it seems stochs red line came below blue line on last candle.Prior to that it was just bending down which could have sound like an alarming bell.

 

[internet_fanbboy]

What happens if there are no buyers/sellers when you want to close your option position ?

 

[TraderRavi]

What happens if there are no buyers/sellers when you want to close your option position ?

I guess one have to wait till expiry to exercise, if no buyers available.......

 

[internet_fanbboy]

I guess one have to wait till expiry to exercise, if no buyers available.......

exercise bole to ?

 

[TraderRavi]

exercise bole to ?

nifty is making lower bottoms, but high bottoms here..........

 

[summasumma]

---- deleted duplicate post -----

 

[summasumma]

Holding ITC 290 PE @ 4.3
cmp: 4.8

All stochs came down.
But hammer formed today is not good for the PUT position.
Lets not mix the another candlestick based analysis for now and still to stochs for this trade and see what happens.

Note:This trade is part of my zerodha 60 day challenge hoping to get brokerage back

 

[Placebo]

What happens if there are no buyers/sellers when you want to close your option position ?

Don't know if any rule change has taken place recently. But in the above scenario the market maker will take it off from you.

Cheers

 

[internet_fanbboy]

Don't know if any rule change has taken place recently. But in the above scenario the market maker will take it off from you.

Cheers

At what price ?

Here is a common scenario that happens in almost all illiquid Stock Options where only ATM Options see trading.

Lets say I have long RCOM 55 CE @ 3 and RCOM comes up to 67 and 55 CE is quoting at 13 on the expiry day, but i am not finding any buyers. As there is no buyer then i let it expire, will the broker credit the amount according to the price at expiry ?

 

[Placebo]

At what price ?

Here is a common scenario that happens in almost all illiquid Stock Options where only ATM Options see trading.

Lets say I have long RCOM 55 CE @ 3 and RCOM comes up to 67 and 55 CE is quoting at 13 on the expiry day, but i am not finding any buyers. As there is no buyer then i let it expire, will the broker credit the amount according to the price at expiry ?

In a natural flow of orders for a person to buy a financial asset a market maker has to sell that asset which he previously purchased. So the market maker has no open position here (assuming that was the only position he had). Now in your scenario if a illiquid stock option is in play then the market maker has to oblige you by buying from you when you are selling here to exit the position. If the current value is 13 at that time then the square off price will be around that minus slippage which almost always will take place. Under no circumstances whatsoever will you be left hanging unless there have been some radically shady rule changes which have taken place over the years which give market makers the right to choose which position they take.

Cheers