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?
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 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
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