My next move: naked option sold

D

dlala

New Member
#1
#1
Hi
I need help with my next move. I sold a Put on State Bank at Rs 5.15, lot of 132 today thus getting rs 679 as premium. The nifty moved up and closed above 5000. the cost of this option is now Rs 10. I have these questions:
Can i let this call expire as surely this will not come in the money over nxt weeks to expiry?
if i settle this, i will incur a Rs 5 loss as i would be buying the same contract for rs 10. what should my next move be? my view is that the nifty will head south on profit taking and close below 5000 in the next few trading sessions and it could mean i can settle for a profit??

Option details:

OPT-STABAN-29-Oct-2009-1800-PA Sell
Lot 132
Trigger 1,820.20
10.00
Margin 23,760.00


thank you
 
I

icon707

New Member
#2
#2
hi, I am little confused. U sold put of SBI, did not SBI increase with Nifty, otherwise your put should go down with increased stock price and then the tread would have become +ve for u. Hope I am figuring it right. please correct if i am wrong.
 
R

rajeshn2007

Well-Known Member
#3
#3
dlala said:
Hi
I need help with my next move. I sold a Put on State Bank at Rs 5.15, lot of 132 today thus getting rs 679 as premium. The nifty moved up and closed above 5000. the cost of this option is now Rs 10. I have these questions:
Can i let this call expire as surely this will not come in the money over nxt weeks to expiry?
if i settle this, i will incur a Rs 5 loss as i would be buying the same contract for rs 10. what should my next move be? my view is that the nifty will head south on profit taking and close below 5000 in the next few trading sessions and it could mean i can settle for a profit??

Option details:

OPT-STABAN-29-Oct-2009-1800-PA Sell
Lot 132
Trigger 1,820.20
10.00
Margin 23,760.00


thank you
Click to expand...
You have sold a put of SBI, and you are asking about nifty above 5000?
Avoid selling puts/calls. Avoid trading if you are not clear what your are doing. square off the position.
 
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