We do not have to worry after margin on sold call option as we have long nifty future also and that will take care of margin.suppose i write a call option of 5300 strike at 140 itself and buy long future of 5300 strike.
if nifty goes down to 5000. i just buy back 5300 ka call option at much lesser price and again do call write at 5100 and get 140 RS.that way i can get back 280 points out of 300 points lost. so i can recover my loss. ofcource this is the strategy in bullish market. but we shud be safer even our trade is not correct and market goes down due to uncertain events.( i can come out without much loss). and repeat the trade again.
this can be done in reverse also like short nifty and sell put option.
if nifty goes down to 5000. i just buy back 5300 ka call option at much lesser price and again do call write at 5100 and get 140 RS.that way i can get back 280 points out of 300 points lost. so i can recover my loss. ofcource this is the strategy in bullish market. but we shud be safer even our trade is not correct and market goes down due to uncertain events.( i can come out without much loss). and repeat the trade again.
this can be done in reverse also like short nifty and sell put option.
