Assume that I have shorted a naked call of XXX for some strike price at a premium of Rs 100 per lot. The underlying behaved as expected until the expiry day. If for some reason the the underlying XXX shot up and the premium of the strike price shorted has gone up to Rs 225. Now, what are the options or strategies that can be employed to prevent loss?
Is shorting an ITM put with at least Rs100 premium per lot sufficient? Any other ideas available?
Is there anything else to be considered for shorting ITM put as repair startegy?
Thanks in advance.