How to write a covered call using ICICI Direct?

#1
Hi Friends,

I have been doing intra-day and positional trading for quite a while now. Now I want to venture into Derivatives. I had acquired knowledge of derivatives in my MBA from IIM C, when I studied Options,futures and derivatives course.

I intend to write a covered call on my 80 BHEL shares.
I need step by step help and guidance from some erudite members of this forum. Also I would l would like to chat with some members regarding steps to perform in icicidirect to write a covered call. My e-mail id is saumit_iimcal (domain is y a h o o dot com). I request some members who have been into derivatives give me their number (if they OK with sharing their contact number) so that I call them and seek their guidance. (Remove "spaces" from my e-mail id. while sending me an e-mail)

Thanks.
 

AW10

Well-Known Member
#2
I don't think you can create one single order for covered call in ICICIdirect.
To create this position, I will goto Equity section of ICICIDirect and buy the stocks. Then goto Derivative section and sell the call option at desired strike price.
Best thing is you can pledge the BHEL shares with ICICIDirect and create margin limit and use that limit to write covered call.

btw - when u sell a covered call, your obligation is for one contract of BHEL which is equal to 300 underlying shares of BHEL. If you have 80 BHEL shares with you then be aware that your sold call position is not completely covered and hence you are exposed to risk similar to Writing Naked Call (partially).

Happy Trading.
 
#3
ICICI is on of the junkest broker ..you can never ever make any money on it

Please try to select broker with lowest cost before doing option tradings
 

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