TTML Broke out today....
In the process, sold call of strike price of 40 rs started rising. Hence i decided during market hours to square off my position by buying back sold calls at Rs 0.45, effectively booking approximately 4000 Rs profit on calls sold.
My delivery position of TTML is also in Profit of nearly 12000 Rs. I will continue to hold and write some more calls closer to series expiry.
Abhijit
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2 comments:
that was my ques which i did'nt ask u yday what will u do if stock rises fast whether u'll buy back one call, now got answer without asking.
Yes Abhay,
The advantage of covered calls is that they help you win even when markets go against you....
Actually the suggested rule is to wait till stock price reaches the call strike price... if it reaches there, then one should consider closing entire position.
Why i chose to close my calls today was i had over leveraged position (meaning sold 20900 calls against 5225 of stock)
Thanks
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