September 12, 2015

Option writing trade in TATASTEEL

Bought 1000 TATASTEEL around 243 (delivery) and wrote 1000 SEP 240 call around 11.

Will hold this till expiry.

If TATASTEEL closes above 243 this expiry:
1.I have to deliver the stocks I own (no profit no loss as purchase price and strike price is same)
2.I get to retain the premium (approx 4.5 %).

If TATASTEEL closes below 243 this expiry:
1.I continue holding the stock (loss possible)
2.I get to retain the premium (approx 4.5%).

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