General Trading Chat

[Smart_trade]

On the same topic, do you sell covered calls on your investments or trades..The point being if the prices shoots up, do you loosen your postions on shares? It would be difficult if these were investments but one would be very willing to do it if these were trades.

Also I am not sure if you have this situation but how do you manage to do it if the number of shares you hold is lesser than the lot size for that FO?

I dont trade covered calls as an independent strategy. But where I have holding in the stock and the stock has come up and I am expecting it to stagnate,I sell covered calls to generate some income out of it. To give you an example I have plenty of HDFC Bank shares in my portfolio ,so yesterday I sold 2200 Jan call and 2180 calls....I will not sell covered calls at HDFC bank at 2000 or 2100...but as I have bought at much lower price ,I dont mind selling covered calls at 2180 and 2200....I am expecting the stock to stagnate, but if it shoots up and goes to say 2300,I am still happy to sell my holding at 2200 plus the premium received.This is not a trading position, I will keep the position till expiry no matter where the stock price goes...I still have free shares to sell at 2300 or 2350 or 2400...so no tension...all these will be in profit.Feb calls I will sell after seeing the market after the budget.

I normally sell covered calls on stocks where I have physical holding in multiple lots qty......or atleast 80-85 % of the lot size....

These days difference in long term capital gains and short term capital gains is just 5 % so not much of an issue if I have to sell my shares in delivery....

I hope I have answered your questions...if missed out something, please ask.

Edit : HDFC Bank based on its earnings will appreciate @ 20 -22% per annum.....it is not like Bajaj Finance which will do 40-50 % per annum.....so in last 1 year it has appreciated by 22-25 % already and the immediate rise chances are not very bright,as it has come out with quarterly results also....but in case it does, we are booking profits only...

Smart_trade

 

[Smart_trade]

@Smart_trade is kotakbank planning for any bonus shares

Bonus in Kotak Bank ? Not that I am aware of......bonus does not help them in reducing Uday Kotak's % shareholding.....they have to first sort out this promotors stake issue at hand.

Smart_trade

 

[cinderblock]

Also I am not sure if you have this situation but how do you manage to do it if the number of shares you hold is lesser than the lot size for that FO?

It does not matter how many shares you have. You can always replicate an option strategy that mimics a single lot.

 

[Smart_trade]

Heard some important statistics on TV. Reliance Growth Fund which was established in 1995 has given a CAGR of 22 % and it has given more returns than even stocks like MRF which is a highflier stock. I have not checked the figures but looks interesting...1 L invested in the fund in 1995 is worth over 1 Cr 10 Lakhs today.

ST

 

[Smart_trade]

Heard some important statistics on TV. Reliance Growth Fund which was established in 1995 has given a CAGR of 22 % and it has given more returns than even stocks like MRF which is a highflier stock. I have not checked the figures but looks interesting...1 L invested in the fund in 1995 is worth over 1 Cr 10 Lakhs today.

ST

I used to buy this fund when its NAV was Rs 300-325...but sold somewhere in short term and then lost a good position in this fund...trading mindset that time...

ST

 

[Loss_Lover]

wasted 1.5 hours watching the full video which was live streamed on youtube. Not supporting any political party but I am wondering a few things:

1. How could he know that the homeless man who attacked him for money, attacked him for $3,000?
2. Absolutely no proofs given except talks.
3. He claimed Brexit referendum was also hacked but it was ballot system. He mentioned it as 'pattern'.
4. He bribed $100 to the immigration official of Delhi airport! Is he serious?

First I started believing the story but after listening to the full video I sensed something is disconnected. Reminded me of flat-earthers who have explanations for everything.

Why just before General Elections? Where was this guy when ECI called all the parties to validate EVM? What credibility does this "stunt" hold? I am neither pro-BJP nor anti-Cong but I am sorry to say UPA failed as a Govt. - scam after scam - and they fail as opposition too... One cannot call foul on everything. Cong.'s strategy to mislead public is evident and very worrisome.

Dada, there is a limit to everything. Even kindergarten toddlers have better common-sense than these people. According to Rahul Baba and Co. not a single institution of the nation is trustworthy - now its the turn of ECI - there is something fundamentally wrong with them. This shows their clear intent is not for general welfare rather self-gratification. Totally pissed off

 

[travi]

Why just before General Elections? Where was this guy when ECI called all the parties to validate EVM? What credibility does this "stunt" hold? I am neither pro-BJP nor anti-Cong but I am sorry to say UPA failed as a Govt. - scam after scam - and they fail as opposition too... One cannot call foul on everything. Cong.'s strategy to mislead public is evident and very worrisome.

Dada, there is a limit to everything. Even kindergarten toddlers have better common-sense than these people. According to Rahul Baba and Co. not a single institution of the nation is trustworthy - now its the turn of ECI - there is something fundamentally wrong with them. This shows their clear intent is not for general welfare rather self-gratification. Totally pissed off

There is a very solid post from an IAS officer explaining how the EVMs are moved around and verified at each step before and after polls to counting.
Just stupidity on the part of those shouting about EVMs when the vote isn't favourable.
Aam janta sees everything.

Source: https://www.quora.com/Can-the-EVM-machines-used-for-Indian-elections-be-hacked-tampered

 

[onequorauser]

It does not matter how many shares you have. You can always replicate an option strategy that mimics a single lot.

Can you please elaborate?

 

[cinderblock]

Can you please elaborate?

If Nifty could be traded and you had 25 shares how would you hedge it with puts?

 

[traderniftybull]

Physical settlement of stock derivatives