option calls

bandlab2

Well-Known Member
#31
there is no such thing as assured constant profits in stock market. options are very risky, you may get/lose money quickly

however you can try covered call writing strategy every month. for this to work you need to have 1 lot of cash shares and sell out of money calls every month. if stock stays below your strike + premium, you get the premium free. if it stays above this number, you need to sell the stocks an you get the premium free, but risk is you will lose any upward move beyond that price

example, you have 75 reliance shares. sell sept 2300 strike price calls for 40 rs. you get 40x75 = 3000 rs. by sept last thursday, if ril stays below 2340, then you will keep both stocks and premium. do this every month. but do it far out of money calls and do it when the market is at high (relatively) in that month
 

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