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
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