[7]
So learning right adjustment is key to success
in most of the option trades try to learn
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various adjustments possible in option trading
through a simple example in this video that
[25]
is consider very simple trade of buying a call with market is a 10700 we are purchasing
[33]
a call of strike by 10900 which is 200 points
out of the money and let us say we purchase
[41]
this call in 120 rupees 60 days to expiry
we have purchased a Call which is 2 months away from
[52]
present day. In this trade obviously the trader
is bullish he wants the market to Go up so that
[59]
he can capture the profit in purchased call
very very simple trade and let us see what
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are various adjustments possible in case the
trade do not go in favour of the trader
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in favour of the trader means in case the market
goes up obviously is getting profit there
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is no need to adjust the trade but in case
lets say after 5 days market goes down by
[84]
150. Has gone down by 150. the trade will be, market
is at 10550 strike prices 10900
[97]
Purchased call is now at 80 rupees it was earlier purchased
at 120 there is already a lose of 40 rupees
[104]
and number of days to expire has also reduced
from 60 days to 55 days very very simple option
[113]
trade. Now let us try to analyse what can be
the various adjustments possible in this kind
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of trade. First, take small loss for loss of 40
rupees rather than losing the whole 120 rupees
[130]
you can close the position and take small
loss will analyse this option is good or not
[134]
by The Adjustment option is good or not what
can be know another adjustment option.
[142]
call at higher strike with same expiry. We can
keep the position as it is whatever purchased position
[173]
sell a call which is of highest rice and with
the
[240]
same expiry Physics paper
