Consistent returns using Covered Calls
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- Опубликовано: 9 фев 2025
- In this video, we will learn how to make money using covered calls.
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#optionstrading #niftytrading #coveredcall #calloption #putoption #nifty #nifty50
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Thanks a lot. Expecting more such option selling strategies.
I am a big fan of your content and have found your videos incredibly helpful in understanding various aspects of trading and investing. Also, it is an advantage of having you guys collaborated with Kite Zeroodha.
I am reaching out to request a detailed, step-by-step video on how to sell covered calls using the Kite Zerodha platform. While there are resources available, I believe your clear and concise teaching style would greatly benefit many of us who are looking to understand this strategy better.
A video that walks through each step, from selecting the stock from your portfolio and navigating the options chain to placing the order, would be extremely valuable.
Thank you for considering my request, and I look forward to your next video!!!
Nice job
For every 100 point move in NIFTY, NIFTYBEES moves by 1 rupee. So please modify the scenarios accordingly. Please correct me if I am wrong.
Please explain in detail with a particular stock Like TCS - that would be much appreciated.
We can use only partial value of pledged margin for option selling due to SEBI 50:50 rule where we need to maintain 50% cash or cash equivalent for margins.
very interesting
thank you
Not worth doing it in India. You have to pay span and exposure margin here. In USA you don’t need margin if you have same quantity stocks with same broker. Only good thing here is we can finance a hedge by a covered call. For example sell a call with a premium of 10 rupee and use that to buy a Put of premium 10 or less.
You can pledge right?
@@sreepathysp6840 50% of the margin should come from cash equivalent sources. If you just pledge niftybees you will have to pay interest to broker who will finance 50% cash capital for you. This will cut into profit. Also keep in mind that loss or win from capital gains cannot be offset against loss or win from options profits when calculating the tax.
Hi, is it possible to buy stock lot and sell option in a single order at the net limit price?
In USA market it's supported looking for the same functionality.
How to select the right strike price ?
For finnifty which bees we should buy ?
Hi sir ABOUT BANKNIFTY&HOW TO BUYING MONTHLY FEE
Can I do this for nifty weekly expiry option also?
How to do it on sensibull
THNAKS. CAN WE DO 1. simultaneously sell OTM put also ? 2.for similar like this what you suggest for Fin nifty and MidcpNifty 3. Whom you suggest for pledging to get less interest on collateral and more margin funding? thanks
interesting, thanks ! can ATM call be sold instead of OTM ?
No. Only OTM should be done.
How to place order for nifty bees covered call . with sensibull or with zerodha. can you make a short video on this.
Hoping that you will soon release an adjustment video to manage the position if our views goes wrong.
Thank you sir you are Rocking ❤❤❤
You're welcome💗
Good
Call prices are very low @5% you will get nothing
Consider you get 30 inr premium for current nifty value which is just 1500 inr .
Better teach to sell call like 3% away which has good premium . Teach us how to shift call to next expiry wisely with proper calculation.
The example we have shown is just for demonstration purposes and to make it easy to understand.
But we need to give some space to the underlying to move. So, taking a 5% higher strike is a good thing to do, even if we get a low premium there. Because you'll gain from the appreciation of the underlying.
It finally becomes a trade-off between
a. You want to collect more premium.
b. You want to give your underlying some space so that you can earn from its appreciation
@@BeSensibull Glad to hear your reply. Thank you very much for making such good video.
Why we can not shift premium amount to next expiry in case spot price reaches strike price of call sold ? There should be some way to keep doing it each and every month.
If nifty or share reaches strike we calculate loss in premium and sold next month expiry call with similar amount of premium. We all know each month nifty can not rise 3 % so even if loss is done in premium it should be covered in next month expiry by selling at the money call or some far call.
Pleas let me know if I am wrong.
Thank you 🙏 sir
Thanks for the video Sir
Please clarify, should we leave the sold call till expiry ? Or should we square off before expiry?
I believe nifty option is settled in cash ? True?
PLEASE clarify Sir
Thanks 🙏
your sensibull doesn't allow option of nifty bees in zerodha
Please make video on margin
There is surely something wrong with the math in the video. The nifty spot now is 19415 and calls for +5% of sept NIFTY which is NIFTY September 20350 call is Rs 19.30 (19.30 X 50) is Rs 965 . So the maximum profit when the closes below 20350 in Sept is just Rs 965 . The margin reqd is 71914. It barely covers the cost of capital !!!
The example we have shown is just for demonstration purposes and to make it easy to understand.
But we need to give some space to the underlying to move. So, taking a 5% higher strike is a good thing to do, even if we get a low premium there. Because you'll gain from the appreciation of the underlying.
It finally becomes a trade-off between
a. You want to collect more premium.
b. You want to give your underlying some space so that you can earn from its appreciation.
Thanks for the clarification. As it is from the Sensibull team my expectation was a practical real case being used. Anyways your videos are good and educative.
u are correct
But it’s too much capital rgt sir?
not detailed properly make another one or do a live strategy with builder
Wrong information.....
This is not so straightforward. When the nifty goes above the Strike price + option premium value, then on the settlement day; you need to sell the nifty bees too so that you can give the profit from nifty bess to the option buyer. Niftybees trade cost around Rs2500 per lot. This amount you have not included while explaining.
2500 per lot ? you mean exchange fee?
Kuch samaj nahi aaya
Hindi video plz sir
You can watch it here: ruclips.net/video/9AY0n-wBakw/видео.html