loss in options.please help!

[krishna.myspace]

Hello everyone.i bought 7 lots for nifty 5700 put MAY contract.
and now it is trading around 3.
i am new to market.please suggest me.
can i recover in other strategy...kindly reply!

 

[ananths]

If you are a beginner, why started with 7 lots?. Did you have any plan before entering the trade other than dreaming of huge profit?
Have you kept any stop loss or profit target?
Nobody will teach you how to make profit. Just go through the few good threads in this site and learn and start with only 1 or 2 lots.
Cheers, ananth

 

[niftytaurus]

HI
If you are new to markets,why did you start with 7 lots? On what basis did u buy 5700 put?
dear friend ,sorry to say that ,,you were doing just gambling,called option trading...please dont come into market without proper knowledge....go through some good threads in traderji or read some book .....get some knowledge....do some paper trading...& then start with 1-2 lots...learn from your mistakes...
dear friend no easy money in market..who try to get it,ruin their capital..
take care

 

[hupadhya]

If you are new to market, you should learn basics of options. There are number of threads in Traderji which you can refer. You can refer the below link for some idea about options.

http://www.traderji.com/options/66266-option-trading-danpickup.html#post639903

 

[DanPickUp]

Hello everyone.i bought 7 lots for nifty 5700 put MAY contract.
and now it is trading around 3.
i am new to market.please suggest me.
can i recover in other strategy...kindly reply!

Well, the members have already posted what I also think about your trade. Not even setting a stop loss order on such a gamble Some how you do not deserve any help for such behavior.

Even than, lets see what could be done for you. Expiry is on the 30.05.2013 So there is still time left to act.

Now you are long 7 lots 5700 puts (7x50=350). We do not know your entry price and when ecaxtely you bought them. Would be helpfull for the math, so we would then know in % how much you are in dept. Kindly provide those information.

Your puts are otm, means only time value and no intrinsic value. The delta of the puts is very low, so you not can expect any strong increase in value as long as market tests the support some times around 6110. Even if it takes this support line, one of the next very strong support level will be around 5973. For the moment it looks that your puts are out of any thing.

One thing you can do is to sell the 5200 put from Jun series. You then will have a horizontal calendar spread. If market stays, moves up or moves down a bit, you can profit from time decay. You need to watch this calendar spread as vola can become your enemie.

Take care and next time use your brain before you enter a trade / DanPickUp

 

[shemz]

As noted already, your options wont pick up much as they are far OTM and close to expiry, even in the event of a strong downside dip in the index. 5700PE will be junk upon expiry, there is very less probability (read impossible) the index is falling to that level by expiry this month. So get out as soon as possible and save whatever you can. And memorize the first rule of trading, get out of a losing position quickly (unless you are a market veteran and know what you are doing).

 

[DanPickUp]

Well, the members have already posted what I also think about your trade. Not even setting a stop loss order on such a gamble Some how you do not deserve any help for such behavior.

Even than, lets see what could be done for you. Expiry is on the 30.05.2013 So there is still time left to act.

Now you are long 7 lots 5700 puts (7x50=350). We do not know your entry price and when ecaxtely you bought them. Would be helpfull for the math, so we would then know in % how much you are in dept. Kindly provide those information.

Your puts are otm, means only time value and no intrinsic value. The delta of the puts is very low, so you not can expect any strong increase in value as long as market tests the support some times around 6110. Even if it takes this support line, one of the next very strong support level will be around 5973. For the moment it looks that your puts are out of any thing.

One thing you can do is to sell the 5200 put from Jun series. You then will have a horizontal calendar spread. If market stays, moves up or moves down a bit, you can profit from time decay. You need to watch this calendar spread as vola can become your enemie.

Take care and next time use your brain before you enter a trade / DanPickUp

For the lovers of option strategy strading:

Now to move on with that idea, which is very difficult to trade for you because of the margin, you would be today on a crusial point with the calendar spread. Both option are priced today around 6 according to what is shown on the NSE link. Means no loss and no profit on this spread.

So what could be the next step to think of?

Market may move further down or may move up again. As your short June 5200 put only could gain 100% if market falls down an other 200 point, but your long May 5700 put could gain nearly 600% if market would fall down those 200 points, you could now start to play both sides by using half of the amount you have with the May 5700 put and use it to buy the 6300 call which is around 3.

In that way you could play both directions. If market moves up 200 point, your long 6300 call could make 600% or vice versa it goes to zero. If it goes to zero you still could make money on the downside.

The left May 5700 put could, if market would fall, still make 600%, which would be 18 and that would still be enough to cover your short June 5200 put, even if market would fall 300 point in the next few days.

This is just for educational purpose and no advise for any thing. But I guess you got the idea what all is possible to trade with options.

Take care / DanPickUp

 

[14092012]

One thing you can do is to sell the 5200 put from Jun series. You then will have a horizontal calendar spread. If market stays, moves up or moves down a bit, you can profit from time decay. You need to watch this calendar spread as vola can become your enemie.

Take care and next time use your brain before you enter a trade / DanPickUp

I'm pretty sure that this made no sense to him, but thanks for free insights.. :clap:

 

[krishna.myspace]

Well, the members have already posted what I also think about your trade. Not even setting a stop loss order on such a gamble Some how you do not deserve any help for such behavior.

Even than, lets see what could be done for you. Expiry is on the 30.05.2013 So there is still time left to act.

Now you are long 7 lots 5700 puts (7x50=350). We do not know your entry price and when ecaxtely you bought them. Would be helpfull for the math, so we would then know in % how much you are in dept. Kindly provide those information.

Your puts are otm, means only time value and no intrinsic value. The delta of the puts is very low, so you not can expect any strong increase in value as long as market tests the support some times around 6110. Even if it takes this support line, one of the next very strong support level will be around 5973. For the moment it looks that your puts are out of any thing.

One thing you can do is to sell the 5200 put from Jun series. You then will have a horizontal calendar spread. If market stays, moves up or moves down a bit, you can profit from time decay. You need to watch this calendar spread as vola can become your enemie.

Take care and next time use your brain before you enter a trade / DanPickUp

sir, i bought 7 lots at 65 for 5700 put

 

[krishna.myspace]

sir, i bought 7 lots at 65 for 5700 put