15
Jun
11

Maruti follow up

In my previous post https://writingoptions.wordpress.com/2011/06/13/opportunity-maruti-dealers-have-inventory-for-28-days/, I had mentioned about selling Maruti 1350 Call. I wanted to wait for RBI rate hike decision on 16th June before writing 1300 Call, but yesterday there was sudden spike in 1300 call premium. Returns from Maruti 1300 call at 4.75% in remaining 17 days of June series, became too compelling for me to go ahead and write this call. Its high risk trade, but returns are also high. There might be some spike in share price if strike at Maruti is called off, but I don’t expect share price to rise too much.

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