Being right about the market direction why am I losing?

#1
Hello Friends,

Someone please explain me why am I losing.
When Nifty was at approx 7848, I had written 7900 put @ 178
But as I write this post Nifty is @ 7877, up by 32 points but the put is at 180 :mad:!

Why is that so?
Shall I hold or exit(I am bullish)? Where did i go wrong?

Thank you.
 

simplebuthard

Working as Trading Assistant. Hire me !!
#2
Hello Friends,

Someone please explain me why am I losing.
When Nifty was at approx 7848, I had written 7900 put @ 178
But as I write this post Nifty is @ 7877, up by 32 points but the put is at 180 :mad:!

Why is that so?
Shall I hold or exit(I am bullish)? Where did i go wrong?

Thank you.
7900 PE current price as of 2.25 pm is 37.

what are you talking about?
 

Dax Devil

Well-Known Member
#6
Hello Friends,

Someone please explain me why am I losing.
When Nifty was at approx 7848, I had written 7900 put @ 178
But as I write this post Nifty is @ 7877, up by 32 points but the put is at 180 :mad:!

Why is that so?
Shall I hold or exit(I am bullish)? Where did i go wrong?

Thank you.
When you wrote pe at 7848 you were not right about the market, as the title of your thread say. The market is in the middle of two extremes, that too on expiry. What do you expect? No sane person would write any option at such point. Square off or hedge it with some OTM call if you want to have some peace during the weekend.
Goodluck
 

Dax Devil

Well-Known Member
#8
I missed your post during market hrs. Will do that on Monday, if damage is not done at the opening.
On monday get into futures instead of call hedging if market remains sort of rangebound. Just pray that the world markets get into V shape recovery lasting the close on friday.

Good luck. Have a nice weekend.
 
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#9
Hello Friends,

Someone please explain me why am I losing.
When Nifty was at approx 7848, I had written 7900 put @ 178
But as I write this post Nifty is @ 7877, up by 32 points but the put is at 180 :mad:!

Why is that so?
Shall I hold or exit(I am bullish)? Where did i go wrong?

Thank you.
Hi

There was already a lot about this topic you posted in your thread title posted in the past in different threads in the forum. To make it quick and simple, check this link:

http://www.investopedia.com/university/options-pricing/option-price-influence.asp

If you want to follow the idea of Dax Devil, educate your self at least about "Covered Puts".

Any way: Many ways to handle just this one option leg you have, but you have to do your home work first before you enter any trade. Have you done that home work about how to trade options when getting may in trouble in any way?

All the best and I am sure you will make it / Dan :)
 
#10
Thank you Dan for pointing to a useful link. I will go through it.

On a lighter note... I may have taken unknown risk with that naked position. Based on the advice here I have even exited the position on loss. But if I had held on to it, I would have been sitting on around 50% profit. As I am writing this text Oct7900 Put is @ 90!

Thank you.
 

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