EARNING RISK FREE 20% PER ANNUM

#11
Let me implement this strategy today 22.03.21
I am buying SETNIF50 18000 quantity @ Rs 150.41., investing 18000 x 150.41 = Rs. 27,07,380/-.
I will get 90% of this as margin tomorrow, by keeping cash balance of Rs. 2,71,000/-.
My total margin fund will be Rs.24,36,642 + 2,71,000 = 27,07,642/-.
Today's Nifty closure is 14736/-. 8% away call is 15900. I am selling 15 lots requiring margin of Rs 15,10,682/-.
 
#12
[QUOTE="l
Today's Nifty closure is 14736/-. 8% away call is 15900. I am selling 15 lots requiring margin of Rs 15,10,682/-.[/QUOTE]
selling 15 lots , which month ...
 
#13
On 23.03.21, 15900 CALL is quoting Rs 46.45. I sold 15 lots.
got credit of 46.45 x 75 x 15 = 52256.25
Margin required Rs 21,63,000.
Excess amount on margin 27,07,642/- - 21,63,000/- = 5, 44,642/-.
I bought 400 Bharat Bonds ETF @ 1002.15, i.e. costing Rs 400,846/-

After April 15, I will sell next expiry (May 21) Call.


Present Position:
Holding SETNIF50 18000 units
Holding EBBETF0431 400 units
Sold 15 LOTS (15 X 75) April 21 expiry 15900 CALL
 
Last edited:
#15
On 16.04.21 I sold 2500 SETNIF50 @ 147.80, getting Rs.369500/-. That amount is invested in 350 Bharat Bonds-EBBETF0431 @ 1028.58, amounting Rs.360003/-.

Now I have 18000 - 2500 = 15500 SBI NIFTY 50 ETF-SETNIF50 valued Rs 22,90,900/-
350 Bharat Bonds-EBBETF0431 valued Rs 22,90,900.

Decision to invest in Bharat Bonds is, that will not lose value and earn also.
 
#16
April 29 expiry 15900 CALL is now quoting Rs 2.90. So I squared off my 15 lots holding for Rs 3037.50.
So I could earn 52256.25 - 3037.50 = 49,218.75.

My total investment is 27,07,380/- + 2,71,000/- = 29,78,380/-
In Banks highest rate of is 7.40 % p.a. in HDFC Bank. That works out monthly 0.62%.
On 30,00,00/- it will earn Rs 18,600/- interest monthly., but this CALL selling fetched me Rs 49000/-.
 
#17
Now Nifty is quoting 14617. 8% away strike works out to 15800.
27 May 15800 CALL is quoting Rs 36.25.
I will sell 20 lots this time to get Rs 54,375/-.
I will keep 10% of earning in Bharat Bond, i.e. nearly Rs 5.437/-.
Now the margin requirement is Rs.20,21,000/-
I hold 15500 SBI NIFTY 50 ETF valued RsRs 22,90,900/-.
90% of which is 20,61,810, which is enough for required margin.
 

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