vendredi 12 août 2016

Seem to be stuck in a Long Strangle, please guide.

So the stock in question here was at 11 on 10/08/2106 when I purchased a ₹7.5 put option @ ₹0.10.

I was sceptical about the outcome of the same and purchased a ₹15 call option @₹0.05 to avoid any loss on my end.

Today the Price of the stock went to 11.3 and the ₹15CE is at ₹0.05 and the ₹7.5PE went down to 0.05.

They are deep OTM options with very low volume as of now.
The Implied Volatility of these options is currently at:
₹7.5PE: -
₹15CE: 91.63

I am still learning to trade options and wanted to do so with real money because I believe in understanding my emotions when actual money has been put into the market rather than paper trading.

Will I be losing a lot of money on this trade or can I get out at no gain or no loss?


Seem to be stuck in a Long Strangle, please guide.

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