My first option buy

[Esthyle_Raja]

Thanks Vikas...

Value of my option today is Rs. 6.65 ( cost Rs. 8.90) :annoyed:

Time to show patience or what ????

 

[findvikas]

Time to show long patience and average your position if it falls further, I highly doubt... we should have some rally tomorrow and we may cross 4900... just my point of view though.

This is high beta stock and the first one to run up and first one to dry as well...

 

[AW10]

Thanks Vikas...

Value of my option today is Rs. 6.65 ( cost Rs. 8.90) :annoyed:

Time to show patience or what ????

Esthyle_Raja, Where is your stoploss point ? What part of your investment you are ready to loose (if i am not mistaken your investment is 8.9 * 3000 = 26700)
Are you prepared to loose - 5k, 10k, 15k, or whole 26k. You are already in loss of 6k+ i.e. 25%. For you to see any profit on this trade, participants need to see the chance that suzlon can reach above 105+8.9 = 114 Rs in next 15 trading days. It doesn't matter whether u see 130 or 150 on suzlon in next 15 days, but market participants need to see that suzlon can 114 level and only then they will be willing to pay more then 8.9 Rs.. for this option. Your breakeven point of 114 rs is already 17/18 rs away from current spot price. In order for you get into profit, suzlon has to go up by 18 rs.. ie 20% approximately in next 15 trading days.

Else, with every passing day, timedecay will hit you roughly by 60 paise per day or more. It will be even fast, if suzlon drops further (i.e your option becomes far OTM).

Suzlon is already below 100. Suzlon has not crossed level of 110 since july. My sincere suggestion, don't hope and prey in market and be realistic. If I were you, I would focus on deciding the stoploss level and cutting my loss. This is your first trade doesn't mean that u do nothing and take loss.

Happy and safe Trading

 

[Esthyle_Raja]

Esthyle_Raja, Where is your stoploss point ? What part of your investment you are ready to loose (if i am not mistaken your investment is 8.9 * 3000 = 26700)
Are you prepared to loose - 5k, 10k, 15k, or whole 26k. You are already in loss of 6k+ i.e. 25%. For you to see any profit on this trade, participants need to see the chance that suzlon can reach above 105+8.9 = 114 Rs in next 15 trading days. It doesn't matter whether u see 130 or 150 on suzlon in next 15 days, but market participants need to see that suzlon can 114 level and only then they will be willing to pay more then 8.9 Rs.. for this option. Your breakeven point of 114 rs is already 17/18 rs away from current spot price. In order for you get into profit, suzlon has to go up by 18 rs.. ie 20% approximately in next 15 trading days.

Else, with every passing day, timedecay will hit you roughly by 60 paise per day or more. It will be even fast, if suzlon drops further (i.e your option becomes far OTM).

Suzlon is already below 100. Suzlon has not crossed level of 110 since july. My sincere suggestion, don't hope and prey in market and be realistic. If I were you, I would focus on deciding the stoploss level and cutting my loss. This is your first trade doesn't mean that u do nothing and take loss.

Happy and safe Trading

Thanks AW10,

My stoploss level is this much only (Rs. 6K). 15 day which are you talking about ... do mean by this month end expiry or what... because this option's expiry is in the last week of october... Or you were telling the effect of time decay ?

If it is because of time decay... then what do u suggest ? I should go for square it off tomorrow, since this is my stop loss level.

 

[findvikas]

Esthyle_Raja, Where is your stoploss point ? What part of your investment you are ready to loose (if i am not mistaken your investment is 8.9 * 3000 = 26700)
Are you prepared to loose - 5k, 10k, 15k, or whole 26k. You are already in loss of 6k+ i.e. 25%. For you to see any profit on this trade, participants need to see the chance that suzlon can reach above 105+8.9 = 114 Rs in next 15 trading days. It doesn't matter whether u see 130 or 150 on suzlon in next 15 days, but market participants need to see that suzlon can 114 level and only then they will be willing to pay more then 8.9 Rs.. for this option. Your breakeven point of 114 rs is already 17/18 rs away from current spot price. In order for you get into profit, suzlon has to go up by 18 rs.. ie 20% approximately in next 15 trading days.

Else, with every passing day, timedecay will hit you roughly by 60 paise per day or more. It will be even fast, if suzlon drops further (i.e your option becomes far OTM).

Suzlon is already below 100. Suzlon has not crossed level of 110 since july. My sincere suggestion, don't hope and prey in market and be realistic. If I were you, I would focus on deciding the stoploss level and cutting my loss. This is your first trade doesn't mean that u do nothing and take loss.

Happy and safe Trading

AW10, he is holding it for Next Month and not current month... just in case you missed that.

 

[findvikas]

Thanks AW10,

My stoploss level is this much only (Rs. 6K). 15 day which are you talking about ... do mean by this month end expiry or what... because this option's expiry is in the last week of october... Or you were telling the effect of time decay ?

If it is because of time decay... then what do u suggest ? I should go for square it off tomorrow, since this is my stop loss level.

I personally feel you HOLD this as this is for next month.

 

[Esthyle_Raja]

Thanks Vikas... With the help of you guys, I am gonna learn all these.... no matter If I get some loss in this first chance... I have been trying to study option for quite a while, but then decided to try it first hand to get practical knowledge.........

 

[findvikas]

Looking at US markets I am hoping to see a massive run tomorrow if Asia supports, we should close above 4900 tomorrow... just my anticipation.

 

[AW10]

Thanks AW10,

My stoploss level is this much only (Rs. 6K). 15 day which are you talking about ... do mean by this month end expiry or what... because this option's expiry is in the last week of october... Or you were telling the effect of time decay ?

If it is because of time decay... then what do u suggest ? I should go for square it off tomorrow, since this is my stop loss level.

I am sorry, I missed the point that you are holding October Contract.
But that doesn't change anyother part of my post - i.e. deciding you stoploss limit,
forming view on current trend of Suzlon, option pricing and how it behaves.

As a trader, my suggestion will be to plan your trade and execute your plan. If your plan was to max loose 6k on this.. control your emotion and cut the loss.
you option is already at 5.2 today.. You have to know yourself, can u stay balanced after seeing 10k, 12k loss on this trade, will u be able to pull the trigger on next trade confidently after this trade, what trading belief this expereince will bring to you as a trader,

Trading is lot more then just booking profit. My suggestion will be to cut loss and spend remaining money in learning trading.. Learn to manage the loss and profits will take care of themselves. Otherwise, it just takes 1 loosing trade to wipeout the profits of many trades. .. or just to recover the loss of 1 big trade.. u need to generate many profitable trades.

In trading, you have only 4 outcomes, from your trade..
1) Big Profit
2) Small Profit
3) Small Loss
4) Big loss

And right trading practice is to Avoid (4) Big loss.

If you are asking others opinion, you will always get contradictory views (like here vikas and I are suggesting different actions). Please take your own decisions as the outcome is going to affect only you. Not to Vikas or My account balance.

Happy Trading.

 

[Bhuppi]

whah is the meaning of EXERCISING OPTIONS?