Staring At Massive MTM Losses - What Should I do Now?

What Should I do Now?

  • Do Nothing. Nifty might close at around 5800 by March end

    Votes: 6 22.2%

  • Book losses and save your skin!

    Votes: 10 37.0%

  • There are other strategies to save the position.

    Votes: 10 37.0%

  • Serves you right for betting so much! haha!

    Votes: 3 11.1%
  • Total voters
    27
  • Poll closed .
LivetoTrade

LivetoTrade

Well-Known Member
#125
#125
smartcat said:
5400 Call value has reached Rs. 110. And I'm going on a short holiday - will be back on Tuesday!

RBI cuts CRR by 75 bps, move to add Rs 48K cr in system
http://www.moneycontrol.com/news/ec...-bps-move-to-add-rs-48k-crsystem-_678468.html

The above news item should give a small boost to the banking stocks (and hence the Nifty).
Click to expand...
Smart Money would sure know about the CRR cut, and it should be factored in the move.

With regard to your Option, please also remember that you are losing 'time value'

Good Luck to a profitable path ! :thumb:
 
intellibitz

intellibitz

Well-Known Member
#128
#128
There's a 50-50 chance that Nifty might close above 5800, 5400 now taken, 5600 next, finally above 5800.

smartcat said:
I have 400 Nifty 5400 call (March expiry) options bought @ Rs. 335 on 22nd Feb 2012.

Initial investment - Rs. 1.34 Lacs
Current value of 5400 call - Rs. 147

Mark to market losses - Rs. 75,000.

Yes - and you guessed it right. I'm quite new (3 months) to options. I know this is sheer foolishness to have taken such a huge position - but such daredevilry resulted in massive profits in February :p From now onwards, I only intend to take smaller positions.

But what do I do with this position? If I square off position, I will be in profits overall (Feb profits + Mar losses) - but I don't like the idea of losing 75k this month. What are the chances of Nifty closing at 5800 by the end of this month? Do I let the position remain, and stand the risk of losing Rs. 1.34 Lacs or stop my losses at Rs. 75k? Or are there any other strategies I can try out to save the position or profit from the current situation?
Click to expand...
 
N

nara

New Member
#129
#129
Hmm...I escaped a similar perilous situation but now I think I escaped too soon:rofl:

I grabbed 120 lots of Nifty 5500 CE at 70, which then tumbled to 46, then to 30, then rose to 66, and finally sold it at 77 yesterday, just to see it at 99 today.:rofl:

sheesh

soap opera all done in one week
 
T

TheDreamer

Well-Known Member
#130
#130
nara said:
Hmm...I escaped a similar perilous situation but now I think I escaped too soon:rofl:

I grabbed 120 lots of Nifty 5500 CE at 70, which then tumbled to 46, then to 30, then rose to 66, and finally sold it at 77 yesterday, just to see it at 99 today.:rofl:

sheesh

soap opera all done in one week
Click to expand...


and all these for only 7 nifty points!!! :rofl::rofl::rofl:

 
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