A stop-loss is an instruction, not a guaranteed price. On expiry days, thin liquidity and fast moves can fill orders well beyond the level you set.
This article is educational. It describes how a concept shows up in Indian index and stock options. It does not recommend a trade, a strike or a position size.
What to look for
A stop-loss is an instruction, not a guaranteed price. On expiry days, thin liquidity and fast moves can fill orders well beyond the level you set. The useful question is what would make the observation stop being relevant, and how large a loss of premium you can accept if it does.
EDUCATION ONLY
This article explains a concept. It is not a recommendation to buy, sell or hold any security, and it does not consider your financial situation.