General Trading Chat

[traderhardrock]

I sold some stock options ( sold calls ) : do you short calls ?isin't the risk unlimited in shorting options(as taught in tutorials)??

writing options is a risky job, and do it if you have long pocket (or have delivery with you) and you know what you are doing. and yes, risk is unlimited (as of futures) with limited gains (max the premium).

 

[Smart_trade]

Thanks .really appriciate the detailed explanation..very informative...

If you are new to options, dont take risk with selling options particularly stock options. I sell stock options because I have stocks to back up....I dont take blind unlimited risk, I am a very risk averse trader myself.....in trading I always must have a defined small risk or best still a zero risk trade like my options sell trade...

Smart_trade

 

[gregferns]

I have some long term position in stocks which I hold for a long time. When I see that the market is falling, I sell a little out of money calls...for example I have large quantity of HDFC Bnk and I sold its 2500 May calls.....I do this only when the market has risen ..there is zero risk as if the market shoots up above 2500, I will have a loss in options but will have that much profit in cash stock holding and I will leave the delivery of HDFC Bank above 2500 too happily....so it is a call sale backed by delivery or a covered call so zero risk.....I can sell multiple contracts in scrips like HDFC Bank,Bajaj Finance etc and make some extra money this way...

Smart_trade

This is really informative sir... Thanks... Just for info what happens exactly if the option shorting is in loss? I mean do your stocks get debited for that much value or what?

Also do you do this only on expiry?

Please revert whenever you get the time...

Thanks in advance.
Greg.

Sent from my POCO F1 using Tapatalk

 

[Smart_trade]

This is really informative sir... Thanks... Just for info what happens exactly if the option shorting is in loss? I mean do your stocks get debited for that much value or what?

Also do you do this only on expiry?

Please revert whenever you get the time...

Thanks in advance.
Greg.

Sent from my POCO F1 using Tapatalk

No, both HDFC Bank and Bajaj Finance are in a list of stocks which will be compulsorily delevery settled from Oct 2019. So till then they are cash settled.....so if you have sold call and the market goes above the call strike price + premium received, then you will have a loss in options and you should have sufficient margins for that.

On the day of expiry or 1 day before, you just buy the call sold and book your loss and simultaneously sell your stock in the same quantity...so you make money on your stocks which takes care of options loss.....in any case I dont wait that long.

Earlier when stock options were all American style options I have been excercised a few times in stocks like Reliance.... but now all options are European style so no excercise before expiry.....

Smart_trade

 

[timepass]

https://www.ndtv.com/india-news/ex-...by-mumbai-immigration-from-travelling-2043002

Ex-Jet Chairman Naresh Goyal, Wife Stopped At Mumbai From Flying Abroad

 

[vishal7176]

@ ST da
as stable goverment is formed now , then next 5 year next for investment purpose.
for long term as 5 year horizon which stock i accumulate for my portfoilo?
could you throw some light which stock is better for long term perspective , ( as last 5 year you suggest HDFC twin , bajaj finance and maruti all shot up like rocket , but my bad luck i cant hold more than 10 % gain)
thank you

 

[Trading Sag]

https://www.moneycontrol.com/news/b...o-how-to-allocate-for-five-years-4021171.html


Modi 2.0 portfolio: Here's how to allocate Rs 10 lakh for next five years

 

[Smart_trade]

@ ST da
as stable goverment is formed now , then next 5 year next for investment purpose.
for long term as 5 year horizon which stock i accumulate for my portfoilo?
could you throw some light which stock is better for long term perspective , ( as last 5 year you suggest HDFC twin , bajaj finance and maruti all shot up like rocket , but my bad luck i cant hold more than 10 % gain)
thank you

At any point of time there are max 20 scrips which are wealth compounders. For next 5 years I am betting on Bajaj Finance, HDFC Bank,HDFC,Axis Bank,ICICI bank,RBL Bank,SBI ,TCS,Asian Paints,Kotak Mahindra Bank,Biocon etc...Maruti I have dropped from the list.

Smart_trade

 

[ankur07090]

@Smart_trade Sir,

I am investing in below MFs:
Kotak Select Focus Fund
DSP Tax Saver Fund
Axis Long Term Equity Fund
Aditya Birla Top 100 Fund
MOST 35 multicap fund
Franklin India Prima Fund
Mirae Asset Emerging Bluechip Fund

Out of these MFs only Franklin Prima Fund is not performing well (3-4 % during last 01 and half year). Should I continue investing in this fund or drop the MF from my portfolio. Please suggest...
Any other MF if you can suggest will be helpful...

 

[vishal7176]

At any point of time there are max 20 scrips which are wealth compounders. For next 5 years I am betting on Bajaj Finance, HDFC Bank,HDFC,Axis Bank,ICICI bank,RBL Bank,SBI ,TCS,Asian Paints,Kotak Mahindra Bank,Biocon etc...Maruti I have dropped from the list.

Smart_trade

thank you ST DA thanks a lot
Can i wait for deep or start investing from this level ?