Hi All,
Just joined and look forward to learning a lot here. Here is my investment story.
Started investing in 'blue chip' equities in March 08, was losing 54% of investment by March 09, then gathered courage to book a loss of 35% and switch to high beta shares from April 25th to May 15, which God (and some hunch/research) inspired decision recovered my investment by selling out entire portfolio on 4th June with a modest net gain of 10%, just about equal to the bank interest I would have earned, but what a relief. I go back to the
portfolio before the switch at today's rates and see it would still be incurring about 20% loss.
The story repeated again as I started re-investing in June and was soon
carrying a net loss of 30% when the market bottomed to 13400. Held my losses and panicked to get out again at 15000 with a moderate profit, though market had still some steam left.
My view is it will bottom to 14000 or lower once more anytime from here to
November, though the growth story will continue after the dip. I am invested
37% of funds, rest is reserved for buying on correction.
Meanwhile I dived into derivatives today for the first time and went and SOLD two call options covered by the stocks I hold, which is why I joined this forum, as even the dealers of my reputed Security agency seem very confused about advising me on SOLD call options.
Can some benevolent soul advise me on the following
1) Must I take some other action, till expiry date 27th August. I don't want to, as only two things can happen (academically speaking, but I don't know how it is settled here). The option gets exercised if the strike price is reached, and I am cool with that since I can offset any margin debited to my account by selling the held stock. The other thing that can happen is that the strike price is not reached and the option written by me expires unexercised. The question is there any procedural compulsion for me close this deal by doing another deal ?
2) when will the option premium ( the sale price of the call options SOLD by me be credited to my account).
I don't need to learn any option basics or the option buyer's perspective here.
Just advice for my specific position. The underlying scrips are currently trading
around 10% below the strike price and may or may not cross the strike price by 27th august.
Thanks and love to all,
Just joined and look forward to learning a lot here. Here is my investment story.
Started investing in 'blue chip' equities in March 08, was losing 54% of investment by March 09, then gathered courage to book a loss of 35% and switch to high beta shares from April 25th to May 15, which God (and some hunch/research) inspired decision recovered my investment by selling out entire portfolio on 4th June with a modest net gain of 10%, just about equal to the bank interest I would have earned, but what a relief. I go back to the
portfolio before the switch at today's rates and see it would still be incurring about 20% loss.
The story repeated again as I started re-investing in June and was soon
carrying a net loss of 30% when the market bottomed to 13400. Held my losses and panicked to get out again at 15000 with a moderate profit, though market had still some steam left.
My view is it will bottom to 14000 or lower once more anytime from here to
November, though the growth story will continue after the dip. I am invested
37% of funds, rest is reserved for buying on correction.
Meanwhile I dived into derivatives today for the first time and went and SOLD two call options covered by the stocks I hold, which is why I joined this forum, as even the dealers of my reputed Security agency seem very confused about advising me on SOLD call options.
Can some benevolent soul advise me on the following
1) Must I take some other action, till expiry date 27th August. I don't want to, as only two things can happen (academically speaking, but I don't know how it is settled here). The option gets exercised if the strike price is reached, and I am cool with that since I can offset any margin debited to my account by selling the held stock. The other thing that can happen is that the strike price is not reached and the option written by me expires unexercised. The question is there any procedural compulsion for me close this deal by doing another deal ?
2) when will the option premium ( the sale price of the call options SOLD by me be credited to my account).
I don't need to learn any option basics or the option buyer's perspective here.
Just advice for my specific position. The underlying scrips are currently trading
around 10% below the strike price and may or may not cross the strike price by 27th august.
Thanks and love to all,