|
|
| Discuss Views On Some Covered Calls at the Options within the Traderji.com - Discussion forum for Stocks Commodities & Forex; HEY GUYS, I AM THINKING OF SELLING FOLLOWING COVERED CALLS AFTER GOING LONG ON THE ... |
|
|||||||
| Notices |
 |
|
|
Thread Tools |
| Sponsored Links |
|
#1
2nd May 2006, 10:36 PM
|
|||
|
|||
Views On Some Covered Calls
HEY GUYS,
I AM THINKING OF SELLING FOLLOWING COVERED CALLS AFTER GOING LONG ON THE UNDERLYINGS: 1. SBI I EANESTLY SEEKYOUR VIEWS. hsarora47 
|
|
#2
3rd May 2006, 07:00 AM
|
|||
|
|||
Re: Views On Some Covered Calls
Quote:
After i read about covered calls in a book, I thought I may have found the "Holy Grail!". If one is getting 5-10% per month and the low risk, that the author promised, why do we do anything else at all! Well that was about a year back. But eventually I discovered that selling Covered Calls is nothing but an equivalent trade to selling naked puts. The RRR is same (or little better for puts) and the trade management is same, and yes, you pay less brokerage by abt 10 times (assumming you pay 0.50% for cash on both side and 0.05% for options on both sides, covered call cost works out 1.1% + taxes, where as selling naked puts sets u back by 0.1% + taxes). Then why do the covered call at all? Well the promise of owning the UNDERLYINGS, gives us a feeling of saftey. Also selling naked puts looks very speculative  as compared to doing a covered call  . hsarora47, would you considered selling naked puts for the above scripts, if yes, then the Covered Calls is right for you! Do give the strike and expected premium to do the RRR and compare it to equivalent puts available. Regards Sanjay
|
|
#3
3rd May 2006, 07:13 AM
|
|||
|
|||
|
Re: Views On Some Covered Calls
hsaroroa47,
Covered call as a strategy is normally used by long term investors who are holding the reqisite shares in the contract lot size in their dp. The calls sold against these act as a supplementary income to the appreciation of the share value over a period of time. However if you are planning going long on the futures and selling calls against them, .... not my cup of tea. Regds
|
| Sponsored Links |
|
|
|
| Bookmarks |
| Thread Tools | |
|
|
Similar Threads for: Views On Some Covered Calls
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Views about Satyam | EquityTracker | Equities | 9 | 29th April 2006 06:15 PM |
| Views For Next Week | nn0023 | Equities | 33 | 22nd March 2006 10:34 AM |
| Views on Geojit | Kandhan | Brokers & Demat Matters | 0 | 2nd June 2005 04:36 PM |
Indemnity, Disclaimer & Disclosure
Notice:
• By visiting Traderji.com you indicate your acceptance of our Forum
Rules Disclaimer & Disclosure and indemnify Traderji.com, its
associates and related parties of all claims howsoever resulting from
the usage of the forum.
• Disclaimer: Trading or investing in stocks & commodities
is a high risk activity. Any action you choose to take in the markets
is totally your own responsibility. Traderji.com will not be liable for
any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
• Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein.
The writers may or may not be trading in the securities mentioned.
• All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy of information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. If you find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
