Price of LT option going down to 9 from ~20

M

Mayurs

New Member
#1
#1
Today was the blackest day in my options life,

LT call option at strike price 1550 went down to 9 from 20ish without any significant drop in the share price.


Another weird fact I saw was change in open interest for 1550 strike price contract was -21000 and for strike price 1500 and 1600 it is 103,000 and 276,125 respectively.... looks like there was a chain reaction triggering many stop losses, including mine of course.... Now questions I have are

1. Does things like this happen all the time?
2. If it is manipulation can I do any thing about it?
3. What precautions should I take before setting stop loss?

please help.

--
Mayur


PS: you must have figured I am an options newbie
 
SavantGarde

SavantGarde

Well-Known Member
#2
#2
It Closed @ 76.50....

SG

Mayurs said:
Today was the blackest day in my options life,

LT call option at strike price 1550 went down to 9 from 20ish without any significant drop in the share price.


Another weird fact I saw was change in open interest for 1550 strike price contract was -21000 and for strike price 1500 and 1600 it is 103,000 and 276,125 respectively.... looks like there was a chain reaction triggering many stop losses, including mine of course.... Now questions I have are

1. Does things like this happen all the time?
2. If it is manipulation can I do any thing about it?
3. What precautions should I take before setting stop loss?

please help.

--
Mayur


PS: you must have figured I am an options newbie
Click to expand...
 
SavantGarde

SavantGarde

Well-Known Member
#4
#4
Just look at the hard statistics of how many S/L orders get triggered... it is for the same reason... people are advised to keep a mental S/L and give it at market rate..

SG

Mayurs said:
@SavantGarde
Thats the sad part, instead of making 100% profit I made 50% loss.....
Click to expand...
 
C

ChaoticTrader

Member
#5
#5
Rather than trading before the result. Best trade in my view would have been to go long on 1528 break on 14:15 candle (1528 was also previous day high) and then adding 1 more at 1574+. Add was evident by stochastic line being above the overbought 70 level ( on 9,3,3 setting) for quite a few candles. :)

Mr SavantGarde want to know about your Bid/ask style if you are willing to share ;) . Intuitive/discretionary trading has always attracted me :)

Regards
CT
 
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