The overall trend of Nifty Bank is bullish. Although we’ve seen a bit of a moderation today, the index has supports at 42,000 and 41,600. A decline below 41,600 is less likely.
So, our advice would be that you now exit the put option that you hold.
If you wish to take a bit of risk, you may hold the put option but with an exit plan i.e., liquidate the put option when the underlying Nifty Bank (trading at 42,030 at the time of writing) index crosses over 42,140.
On the other hand, if there is a drop from here, make sure to exit when the index touches 41,600. You can consider buying call options at this level.
Send your queries to derivatives@thehindu.co.in