Need advice in salvaging my position in Tatamotors

#1
All,

Need some advice to salvage my position in tatamotors. I entered in a ratio call spread. Last week, I bought a 250 call at 11 and sold TWO 260 calls at 6.7. My logic at the time was that tatamotors will not corss its life time high of Rs. 274 and the spread was tuned towards that.
now I know my assumption is not correct.
250 call is at Rs. 36.5 and 260 call is at 27.5. I sold one of the 260 calls at 25.2 yesterday.

Now, I'm left with a bull call spread of one 250 call(long) and 260 call (short). currently, I'm at around Rs.20K loss.

My question to the Punters is:
Can this situation can be salvaged to minimize/eliminate loss?

thanks for all your input.

Regards,
Jaya
 

SavantGarde

Well-Known Member
#2
Take your Profit on the Long Call 250 ...Today......which will leave you with the 1 260 Short Call..... considering we have a long weekend ahead....leading upto expiry next week..... Sell (Short) 300 PE 1 lot..... to offset your Short CALL of 260...... & see how it goes on the first trading day next week.....!!!

Next time create a spread of 30 bucks between the strike.... that is basically where you erred this time....!!!

Next time find another word for 'Punters'


SG

All,

Need some advice to salvage my position in tatamotors. I entered in a ratio call spread. Last week, I bought a 250 call at 11 and sold TWO 260 calls at 6.7. My logic at the time was that tatamotors will not corss its life time high of Rs. 274 and the spread was tuned towards that.
now I know my assumption is not correct.
250 call is at Rs. 36.5 and 260 call is at 27.5. I sold one of the 260 calls at 25.2 yesterday.

Now, I'm left with a bull call spread of one 250 call(long) and 260 call (short). currently, I'm at around Rs.20K loss.

My question to the Punters is:
Can this situation can be salvaged to minimize/eliminate loss?

thanks for all your input.

Regards,
Jaya
 

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