nake call writer

hi all friends iam a option trader can some one tellme what to do when you sell a nifty call 5100 and nifty cross that mark

Well, essentially since you have written the call you must have recieved the premium for it. Now since Nifty has crossed that level, you will take losses as the markets moves higher and higher. When you write a call your profit potential is limited (premium recieved) but your losses are unlimited. Din you use a stop loss ?

Hope you find this useful.

http://www.traderji.com/options/34089-tracking-put-call-open-interest-17.html#post389459

cheers.

Well it depends when you sold the Call... for instance I sold 5100CE @ 150 when market touched 5180... currently its trading @ 84.50 so I am still in gain (if I had hold it) but I had booked it @ 90 when market touched down 5000

What was your level... decide your breakeven this way...

5100+Premium received = your breakeven

for me it was
5100+150 = 5250... so I could safely hold 5100CE short until spot crosses 5250 which is very safe bet.. and if at all Nifty spot manage to cross 5200 you buy Future & DO NOT cover your short call.

The idea is to keep 5100CE with you as market might fool you either way...and you locked the profit of 50points