CUMMINSIND | Something interesting coming from this bottom. Big move after closing above 520 as its a long time resistance. But lets capture a small swing before that. I see it has almost 12% to 15% potential in this swing.
Hi,
I have bought Cummins Ind OCT FUT lot @453.40 and in huge loss after yesterday's fall.
Suggest me what to do to cut my losses.
Thanks
srikartiram
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@kindFriend81862, Sorry to know you are in loss. F&O is riskier in Stocks. The stock has gone below the trendline support. Hence we should not hold this position. However i've a solution for you if you want to recover your loss from this same trade.
1) You can consider selling 460 CALL which is trading around 7.95 (1200 x 2 x 7.95 = 19080) if market doesn't go above 460 this month. Since you are holding FUTURE position the margin will be cheaper. But don't hold your FUTURE position below 425 it will become more weak.
2) If market shots up again, you can move your position from 460 to 500 depends on the premium. To defend your loss in call option that you sell you can take a statergy called "Poor Mans Covered call" you can learn this from youtube channel "Capitalzone"
It will be a good learning curve if you attempt these steps. Don't be stressed out of this loss, any loss is occurring only to sharpen our knowledge in the market. I'm sure you will recover shortly. Good luck.
kindFriend81862
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@srikartiram,
Thanks a lot for your valuable suggestions.
I have bought Cummins Ind OCT FUT lot @453.40 and in huge loss after yesterday's fall.
Suggest me what to do to cut my losses.
Thanks