Suppose I buy Nifty Beas (20 Nos = Mini Nifty), can I play covered call strategy and short sell OTM calls? If the premium increases nifty beas would cover up the losses and if the premium declines I would have that as profit.
20 Nifty Beas = Rs. 100000/-
APR PE MiniNifty 5300 = Rs. 70/-
Hence if I sell APR CE MiniNifty 5300 I may gain Rs. 1400/- about 1.1/1.2% deduction commission etc.
Is the above possible? Moreover is that viable considering the commission etc?
20 Nifty Beas = Rs. 100000/-
APR PE MiniNifty 5300 = Rs. 70/-
Hence if I sell APR CE MiniNifty 5300 I may gain Rs. 1400/- about 1.1/1.2% deduction commission etc.
Is the above possible? Moreover is that viable considering the commission etc?
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