Hello Friends:
Over period of time, i have accumulated some shares [only nifty 50 stocks] in my demat and these are now worth 2,25,000 [cost 205,000]. This accumulation is an ongoing process.
Broker : Zerodha
Demat : ILFS
Pledging of shares allowed.
PLAN:
i wish to use these shares in my Demat a/c for covered call or index option writing to generate income.
covered call cannot be written because none of my individual stock holding are anywhere near the STOCK option lot size.
writing far OTM INDEX calls/puts to generate income looks feasable.
REASON FOR THIS PLAN:
there can always be a bad news and markets can crack. Hence, generate cash regularly from holding and bring down the cost component.
Kindly advice/share your thoughts/practice.
regards,
Over period of time, i have accumulated some shares [only nifty 50 stocks] in my demat and these are now worth 2,25,000 [cost 205,000]. This accumulation is an ongoing process.
Broker : Zerodha
Demat : ILFS
Pledging of shares allowed.
PLAN:
i wish to use these shares in my Demat a/c for covered call or index option writing to generate income.
covered call cannot be written because none of my individual stock holding are anywhere near the STOCK option lot size.
writing far OTM INDEX calls/puts to generate income looks feasable.
REASON FOR THIS PLAN:
there can always be a bad news and markets can crack. Hence, generate cash regularly from holding and bring down the cost component.
Kindly advice/share your thoughts/practice.
regards,