Opto Circuits Futures. I have a short position with high losses.

gauharjk

Well-Known Member
#1
Opto Circuits 30 day average was 270. - http://www.moneycontrol.com/india/s...alsmedical-services/opto-circuits-india/OCI01

I shorted 1 lot of 1000 shares @286.

But it kept going higher. So, to average out I shorted one more lot of 1000 shares @306. Right now, I am stuck with 2000 Opto Circuits at an average of 296, with a huge loss

My Futures expiry is on 30th September... Can I expect to recover in time? The market keeps going up like a rocket. Today, it has crossed 19500 on Sensex and 5850 on Nifty... Will there be a correction any time soon?
 

gauharjk

Well-Known Member
#3
How should I hedge it? Should I buy Call options for Opto Circuits? At what strike price?
 

alroyraj

Well-Known Member
#4
Instead of going short you should have reversed it and gone long. Only hope is holding till expiry when there is hope of some reduced losses. It has given a breakout,chances are it would peak for a few days then fall,better to hold. Opto circuits has a habit of correcting after any breakout so monitor the intraday lows. If it fails to break 318 it could fall to 300 levels.

Dividend ex date is on 21-Sep-2010, hence the breakout. So by 22 Sep it will definitely fall,then there is the book closure period where any stock usually shows weaknesses on reduced volumes,so u will have to wait till then.
 

gauharjk

Well-Known Member
#5
Thank you alroyraj for extremely helpful info... :)

The stock value increased today again. Its going up like a rocket. I hope it comes down to manageable levels after the dividend so that I can minimize my losses.

Should I short 1 more lot @330 to average out?

Angel Broking didn't advice me to reverse position and go long... :(
 

gauharjk

Well-Known Member
#6
Looks like I am stuck in a bull market with a short position. I hope there is a decent correction after the General Meeting and dividend on 21st September. The BC Start Date is 23rd September until 28th September. Is there any hope I can reduce my losses on Opto Circuits?

Any tips for me please?
 

columbus

Well-Known Member
#7
Looks like I am stuck in a bull market with a short position. I hope there is a decent correction after the General Meeting and dividend on 21st September. The BC Start Date is 23rd September until 28th September. Is there any hope I can reduce my losses on Opto Circuits?

Any tips for me please?
Opto recorded 52-week high today.
Remember Opto-circuit is NOT the only stock available on the exchange.

It appears OPTO is a bad choice,here is last 3 month chart.
 

anuragmunjal

Well-Known Member
#8
But it kept going higher. So, to average out I shorted one more lot of 1000 shares @306. Right now, I am stuck with 2000 Opto Circuits at an average of 296, with a huge loss


Dear friend

my advice may sound a little harsh, but believe me if u want to earn money in the markets, u should be out much before the above statement even came to your mind. this statement simply shows that u entered a trade without any plan. the point is not whether optocircuits would rise or fall from this level. believe me no one can predict this exactly,but the point is that as a trader u let a position totally get out of ur hand, which I believe is a very bad sign.

regards
 

SavantGarde

Well-Known Member
#9
Hi GauharJK,

Want to know what is the available capital.....with you...depending on the same.....will try and turn this around... Next time do not make stupid mistakes like this


Happy & Safer Trading

SavantGarde

Looks like I am stuck in a bull market with a short position. I hope there is a decent correction after the General Meeting and dividend on 21st September. The BC Start Date is 23rd September until 28th September. Is there any hope I can reduce my losses on Opto Circuits?

Any tips for me please?
 

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