Covered call?

jaykiru · #11 2nd September 2006, 02:04 AM

Quote:

Originally Posted by shouvik_sanyal2000

Dear sanjay,
what u say is quite right. However , there will be a windfall this month too. market is going to crash, nifty will break 2800. i have bought 10 puts of strike price 3000 at rs. 35. keep watching and enjoy

10 Puts K 10 Lots.. Gr8 Goining keepit up....

Jay

amitt29 · #12 7th September 2006, 01:24 AM

Market timing is difficult but can be done.But it requires gr8 mental stablity and mind wrenching gymnastics.

Not thru TA alone.
Warm Regards.

munde_77 · #13 24th October 2007, 11:36 PM

Quote:

Originally Posted by sanjayguptadelhi

Covered call is a combination of long position in stock through physical or future and short position in option by selling call option. it is a very popular premium earning strategy for option traders and is very effective if used properly.

For example if you have Reliance 300 shares(1 lot) purchased in your account either physical or future let us say at today's price of 980. Now you sell a call option of 1000 strike at a premium of Rs.25 per share which was today's price. you would be in a covered call position.

If Reliance stays above 955 you will be in profit at month end. if reliance remains below 1000 on expiry you pocket total premium of Rs.25 per share and your long position is intact.

If you need to know more pl email me.

There are many more profiatable strategies available.

Did u ever try this strategy ............
let me know your e-mail address so that I can contact you
regards
munde

ashok1010 · #14 30th December 2007, 04:03 PM

Hello Friends,

Is it possible to own a long position in Nifty futures, and then write covered calls or puts on it ?

Would this strategy require me to put any additional margin , apart from the margin used to buy a long position in Nifty.

Hope its not a dumb question

Regards,
Ashok.

aca_trader · #15 31st December 2007, 04:45 PM

Quote:

Originally Posted by ashok1010

Hello Friends,

Is it possible to own a long position in Nifty futures, and then write covered calls or puts on it ?

Would this strategy require me to put any additional margin , apart from the margin used to buy a long position in Nifty.

Hope its not a dumb question

Regards,
Ashok.

Yes! You would have to pay margin for both calls and futures. With a cash stock, your broker might have allowed you to use stock itself as margin but not with futures.

Regards,
--Ashish

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