Posts Tagged ‘Tata Motors covered call

26
Aug
14

Tata Motors covered call..

It is difficult to find reasons for not being bullish on Tata motors. One of them could be that it is currently over-owned stock and slight disappointment on quarter end earnings front or negative news could trigger big correction. Tata motors is more about JLR than standalone Indian unit. Any slowdown in Chinese sales number or regulatory action from Chinese authorities could also be big dampener for Tata motors stock price. China contributes close to 25 percent of JLR sales. JLR maufacturing facility in China will begin production by 2014 year end. Tata motors CV & Passenger car business in India are struggling. In case of CV cycle revival in India Tata motors along with Ashok leyland will be key beneficiary.

I am quite bullish on Tata motors for quite some time. I am holding its Futures and keep on rolling them month after month. For September series I have also set up covered call. For every lot of bought Tata motors Future, I have sold ATM (At The Money) call option. Given the sharp recent movement I have also sold OTM calls of Tata motors.

Read more about JLR: http://www.forbes.com/sites/greatspeculations/2014/07/10/riding-on-china-growth-jaguar-land-rover-could-reach-one-million-annual-sales-by-2020/

Disclaimer: These are my personal views and you should do your own due diligence before acting on anything written in this blog. Please take reasonable care while trading in options, especially while selling. I am not advising anyone to sell or buy options. My purpose of writing this blog is to highlight my trading strategies




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