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| Discuss Underlying stock/index suggestions for Covered Call Strategy at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; I would like to try covered call strategy. Where you hold stocks and sell OTM ... |
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#1
6th July 2008, 05:49 PM
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Underlying stock/index suggestions for Covered Call Strategy
I would like to try covered call strategy. Where you hold stocks and sell OTM calls for near expiration date.
Can you please suggest any good stocks or indexes for this strategy? I am looking for options having good liquidity and volume. This leads to another question. Why volume of option trading in India is very thin. Many times my order dont get filled at all. I use icicidirect but any other nice broker suggestions are also welcome. Thanks 
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#2
7th July 2008, 07:31 AM
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Re: Underlying stock/index suggestions for Covered Call Strategy
you are tryin to do the things in reverse. first buy a good stock that you think would go p, then to hedge that write a call at OTM.
In india options trading is very thin and you will see very less or no volmes in most of index stocks at OTM. Try reliace, RPL, LT etc. but yo need to buy one full lot atleast
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#3
7th July 2008, 03:58 PM
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Re: Underlying stock/index suggestions for Covered Call Strategy
Quote:
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#4
8th July 2008, 05:37 PM
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Re: Underlying stock/index suggestions for Covered Call Strategy
You will find good volume in Reliance and RPL options on most of the time. Everyday, some or other stock which is in news might show pickup in option volume but that needs to be tracked during market hours. I visit NSE site during mkt hours to find the stocks that are showing good option volume.
Watch out for Bid price of option and don't rely on last traded price. Due to limited liquidity, slippage might be large. Happy Trading
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