Covered call Reliance almost ITM- adjustments?

F&O
1

Guys, I did a covered call on Reliance 2360CE SEP expiry and now my strike is about to go ITM and I’m at a notional loss of about 22k odd as the premium has gone from 14 to 58

What would you guys recommend?

  1. Wait till a few days before expiry and see if the news was a rumor and prices correct?
  2. OR roll over to OCT 2500 CE which closed today at around 68?
  3. OR let it expire and give delivery of shares and enter a cash-secured put in the next expiry

Thanks

2

why dont you instead short 2400 CE for sep and exit 2360 CE for now.
so your loss on 2360 CE wil be Rs 44 per lot, but writing on 2400 CE will be Rs 45.
So you still get Rs 1. Only important conviction required here will be if reliance maintains its momentum.
Yesterday was lot short covering on FnO. Amazon news right now is speculative.
Should something change, you can still move higher and meanwhile buy Reliance shares on cash market… provided you feel current valuations are not a stretch immediately.

Good Luck!

3

Thanks Mayank. I rolled over to 2500CE OCT and took in a credit of 65 and squared off current at 56.6. The official statement from the company was “Cannot confirm or deny” which in all probability means that the news is true