How to deal with STOPLOSS and sell in market IN options which does not support it?

kingsmasher1

Well-Known Member
#1
Hello Friends,

So today i made a loss of 7k :lol: in options trade.
I was dealing with options for last couple of days with luck and profit as high as 4.5k.

The reason i dealt with options is: 1) Low brokerage as cost depends on premium which is very less compared to actual share price 2) Huge lot = huge profit (can also become huge loss like i had today :clap:)

The reason for the loss is, the base share turned against me quite quickly AND THERE WAS NO auto STOP LOSS with sell in market which can be set in tradetiger for options.

For futures or equity, it's easy - set a stop loss and sell at market. But in OPTIONS, it doesn't allow:
(1) Setting stoploss
(2) Sell at market (you need to put some price manually)
(3) If suppose you set a stoploss at some price - the previous profit booking price gets overwritten with this (No 2 advance orders for same option sell at same time).

The next problem with options is, if price is against you, people bid at a very different price than what it should be - letting your order get pending. (example: If market price for Call Option Reliance is say, 15.5, and the price is coming down, people bid for lets say 14 - and your order remains pending, till the price drops to 14 incurring further loss :annoyed: :annoyed:

Dear experts - How do you folks deal with it?

Kindly suggest.
Thanks a lot in advance.
 
Last edited:

ram2010

Well-Known Member
#2
Re: How to deal with STOPLOSS and sell in market IN options which does not support it

Hello Friends,

So today i made a loss of 7k :lol: in options trade.
I was dealing with options for last couple of days with luck and profit as high as 4.5k.

The reason i dealt with options is: 1) Low brokerage as cost depends on premium which is very less compared to actual share price 2) Huge lot = huge profit (can also become huge loss like i had today :clap:)

The reason for the loss is, the base share turned against me quite quickly AND THERE WAS NO auto STOP LOSS with sell in market which can be set in tradetiger for options.

For futures or equity, it's easy - set a stop loss and sell at market. But in OPTIONS, it doesn't allow:
(1) Setting stoploss
(2) Sell at market (you need to put some price manually)
(3) If suppose you set a stoploss at some price - the previous profit booking price gets overwritten with this (No 2 advance orders for same option sell at same time).

The next problem with options is, if price is against you, people bid at a very different price than what it should be - letting your order get pending. (example: If market price for Call Option Reliance is say, 15.5, and the price is coming down, people bid for lets say 14 - and your order remains pending, till the price drops to 14 incurring further loss :annoyed: :annoyed:

Dear experts - How do you folks deal with it?

Kindly suggest.
Thanks a lot in advance.
you can buy or sell - market order , put stoploss etc-

same as equity or futures provided the option should be liquid-
 

kingsmasher1

Well-Known Member
#3
Re: How to deal with STOPLOSS and sell in market IN options which does not support it

Thanks for the response.

I tried it, but seems like the tradetiger does not let sell options at market price or set stop loss either.

You can just put one sell price (either at profit or at loss).
 
Last edited:

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