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

[timepass]

Hey Cat, can you get hold of 2-3 days' intraday charts of this option ?? If not, look at the charts below. Do you see any intraday trading opportunities ?? Today the nifty closed in the positive, yet this scrip lost about 8 points. Anyway, unless nifty closes above 5700 this series, you are in for some loss. So, consider the amount of time and effort that you can give to turn this thing around, and keep us posted.

Of course, you may ponder over Eagle's words of wisdom a few posts earlier :

salvaging a sick trade usually consumes more energy/time/money than initiating a fresh trade in line with the market trend.

 

[DanPickUp]

Can't the same results be achieved by booking losses on 100 or 150 calls right now? And still keep a small hope of winning big if Nifty shoots up for some reason?

I like the concept of limited loss, unlimited profit - rather than limited loss, limited profit.

I'm fearful the broker might sell off my shares (or worse) if I'm not able to pick up his call for some reason. I can't afford to keep huge amounts with my broker, when the money should be earning interest in bonds.

But buying 400 calls, each one with a value over 330 Rp and with no idea about how to trade them did not bother you.

:lol::lol::lol:

Man, you are really nuts.

 

[timepass]

But buying 400 calls, each one with a value over 330 Rp and with no idea about how to trade them did not bother you.

:lol::lol::lol:

Man, you are really nuts.

But it's really good that he has realized that he has a catastrophic trade, and has asked for advice. So guys, what would be your advice for a newbie trader ??

1) Get out of the trade immediately, protect your capital.
2) Hedge by buying puts/ selling calls/ selling Nifty
3) Do nothing, the expiry will be above 5700 certainly.

 

[amit44]

Where is Mr AW...

 

[munde_77]

I will try to explain option repair strategy tomorrow. It may help to reduce your loss to great extent.

 

[DanPickUp]

I will try to explain option repair strategy tomorrow. It may help to reduce your loss to great extent.

A man and a word and you can be sure, that all are waiting for that post.

:thumb:

You already got all my respect before even posting it.

 

[Raj133]

Based on my view point, now market is in sideway so dont worry

Most propably it will reach 5600+ level in next 2 weeks.

 

[munde_77]

You can try one of theses methods if needed, I will give 3 or 4 examples. This is just an idea ,

Screenshot

Screenshot

From above example you can see that if market expires below 5200 , your maximum loss will be 24400 if market expires above 5400 your maxium loss will be 104400. You can do one thing to minimize loss on upside, if market moves above 5400 or 5500 you can short ATM 5400 pe , buy ITM CALL or buy in futures . For selling options, good amount of margin money is blocked..

 

[trade4putuval]

Hi,

Let me apologize beforehand if I am adding salt to injury! But you said that you stand to lose 75k. Let go of that 75K. You can make it some other trades. At the moment, you are relying on devil, "Hope". It kills all traders instantly. The moment you hope on a trade, that trade is gone. Believe me, it has happened to me many times. I had been successful in those trades where I had not hoped at all.

Besides, see this thread too for the nifty trend in the coming week.
http://www.traderji.com/futures/534...-levels-median-line-charts-66.html#post654016
I have been following this thread since some time and it has been successful 80% of the time. Of course, it cannot be 100 percent since the person is a human, not God!!!

Also, this is the weekly chart.

If we plot the range of nifty as shown in blue lines, nifty is poised for downside, at-least till the middle of the range before there is a meaningful bounce-back. So I would prefer you lose out this trade and wait for a good trade. Wish you all the best!

Disclaimer: I may be wrong too. But Hope is also wrong in this market.

 

[munde_77]

you can try this also

http://www.investopedia.com/articles/trading/08/repair- strategy.asp#axzz1o1pcDgnShttp://www.investopedia.com/articles/optioninvestor/05/030105.asp#axzz1o1pcDgnS