Need suggestion - Holding TCS 2800 Apr call

General
1

Hi Guys,

For those of you who trade options frequently, I need some suggestion.

I am holding TCS 2800 Apr calls bought at 120 levels. As this call is not liquid, I need your inputs if I should let them expire as is or try selling them next week.

Regards.

2

depends on how many lots you have…
how many lots you have and when did you buy ?

3

Two lots. Bought it on 28th march.

4

if you think TCS wont fall , then you can hold it … STT is approximately 4pts , so decide accordingly
you can buy ITM puts as well after consiedering the net STT and bi-ask losses if you cover the calls

5

Thanks bro.

6

Wow profit of 1.5 L. I would’ve sold it at current level and booked profit. And probably bought OTM calls and puts later.

1 Like
7

try to take the responsibility of your money and your action.

8

Sell

Reason

  1. itm options attract higher trade. Sometimes enough to eat away at your profits
  2. tcs can comedown if there’s profit booking
    Try to get a reasonable price

Don’t worry about 2-5₹ spread and just exit

9

Thanks. But I wanted suggestion only on TCS options call though.

10

Thanks buddy

11

*higher taxes

12

one simple suggestion if you are in doubt than exit

13

You said that you bought 2800CE on 28th march so lets assume you bought it for closing price of 109…Now the intrinsic value of 2800 CE is 600 so you are sitting on the notional gains of 491 ( good patience level)…at this time…you can square it off…since the contract is not liquid, I guess u wont be getting good price…once thing you can do is go for protective put…you can buy ATM PUT at the current price and any sharp reversal in the stock price…will be compensated by the gains in the put…here we are assuming that you will have to let go of the premium of ATM put just as insurance…IF TCS still continues with uptrend you can gain more and finally go for market settlement of 2800CE instead of squaring it off…dont worrry as STT will be around 4 points.

1 Like
14

Just a suggestion here… let’s assume I take this trade. I short 3450 call and collect premium of rs 21.

What will be profit/loss pts for this particular trade of shorting 3450 call in following cases?

  1. If TCS closes above 3450… let’s say 3500
  2. If TCS closes at 3350
  3. If TCS closes at 3450
15

IMO IT stocks have had a good breakout recently and I see more upside before the end of this month. If I were you, I would have held it till expiry. :blush: