Tata Motors - On breach of 280, we can track the stock for a target of 250. The movement would be slow as we have an unfilled gap on the way. Ideal way to trade this setup would be by taking - (1) Bear Put Spread (2) Shorting OTM Calls These strategies will avoid premium erosion due to time decay.
If you have cash positions, you can either hedge or exit.
Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
Trade closed manually
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Shorting OTM Calls worked well for us. We are still bearish on the stock, at least till the chips issue is sorted.