Tcs

#1
Hi,

Before TCS results, I was recommended TCS strategy by my brokerage firm of

buying TCS 1200 call 1 lot @ 26.50 and buying TCS 1100 put 1 lot @ 20.

Currently I am losing money on both positions and really do not know what to do as I am new to options. Please help as expiry is on this thursday.
Pls Reply.
 

PGDIMES

Well-Known Member
#2
Hi,

Before TCS results, I was recommended TCS strategy by my brokerage firm of

buying TCS 1200 call 1 lot @ 26.50 and buying TCS 1100 put 1 lot @ 20.

Currently I am losing money on both positions and really do not know what to do as I am new to options. Please help as expiry is on this thursday.
Pls Reply.
Manasi,

this strategy was given only to play before or on the day of the result. This is not a buy-and-hold strategy. You would lose the premium completely if you hold on. Just sell them at whatever price you get (if the selling price is greater than all the costs incurred for selling).
 
#3
Hi,

Before TCS results, I was recommended TCS strategy by my brokerage firm of

buying TCS 1200 call 1 lot @ 26.50 and buying TCS 1100 put 1 lot @ 20.

Currently I am losing money on both positions and really do not know what to do as I am new to options. Please help as expiry is on this thursday.
Pls Reply.
The options rates mentioned by you apparently are for the August series. Such strategy can be useful only when you're expecting big movement in the share price on either side due to some important event (such as results). Once that event is over, there is no point in continuing such strategy since you'd be losing money on both sides, i.e., on the Put option as well as Call option due to time decay. For example, yesterday (29th July), the closing prices of TCS 1200 Call August was only Rs. 10.30 and 1100 Put August option was only Rs. 17.55, vis-a-vis your purchase price of Rs. 26.50 and Rs. 20, respectively. Therefore, already there is a loss of about 50% in just about 3 days. So, it would be advisable to book losses and put an end to the losing strategy.

One more thing, when your brokerage house advises you with such a strategy, it was expected of them to tell an innocent client like you about the exit strategy as well. In the absence of that, you continue to lose money by holding the position as if it is a long term investment.
 

IAtma

Well-Known Member
#4
never play in options.:cool:

specially from long side.;);)


Hi,

Before TCS results, I was recommended TCS strategy by my brokerage firm of

buying TCS 1200 call 1 lot @ 26.50 and buying TCS 1100 put 1 lot @ 20.

Currently I am losing money on both positions and really do not know what to do as I am new to options. Please help as expiry is on this thursday.
Pls Reply.
 

hills_5000

Well-Known Member
#5
a) Brokerage firms are there to make money on your trades.

b) If they give a reco like you have gotten they give a SL as well.

c) Use your own analysis before you enter the trade for reasons mentioned at (a) above.

d).. When in doubt ...dont give your money into the market...be a reluctant buyer and an eager seller ( like someone once told me )

e) Unless you know the mechanics of options ..dont get into them ...be aware of time decay in options when you enter into them.


f) Your relationship ( and advisory ) manager in the brokerage firm is part of the system. If he was so good ....he'd not be there in the first place .


Hi,

Before TCS results, I was recommended TCS strategy by my brokerage firm of

buying TCS 1200 call 1 lot @ 26.50 and buying TCS 1100 put 1 lot @ 20.

Currently I am losing money on both positions and really do not know what to do as I am new to options. Please help as expiry is on this thursday.
Pls Reply.
 

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