I am new to option buying.
I want to know some risk management techniques in buying options especially in BankNifty Weekly Options.
Like regarding stoploss, waiting period etc.
1 problem I’m facing
I buy a call at a premium of Rs 500, and I set a stoploss of 50 pips, i.e. 450 pips, it is so volatile that it hits a Stoploss and reverses the trend, again the premium moves to 600-700, then it hurts.
And suppose I didn’t put a stoploss and it goes against saying Friday, Monday (few days left until expiration), should I book a loss or hold it until expiration.
Any tips when booking or when booking lost.