Want to become a Successful Multi Asset Trader? Be a part of 6+6 month trading mentorship program by Elearnmarkets with 5 mentors & 5 associates. To know more, fill the form at - elearnmarkets.viewpage.co/TH-cam-TMP or call our team at +91 89024 75221
The best thing about Mr. Vivek Bajaj in these videos are the questions he asks, like a novice. Despite having so much knowledge in the areas of markets and investment he doesn't express them so that anyone who watches these videos understands them in depth. Wonderful!!! Thank you :)
Covered call is best strategy with Minimum risk. Going to deploy this in NiftyBees. As I am doing analysis of this strategy for last 8 months. Thank you Vivekji for valuable session.
One of the best conversation i have come across and the topic is highly appreciated.. Creating wealth by covered call is really amazing and Vineet Jain ji has given awsome information.. Thank you Vivek Sir.. Love your topics always....
Vivek sir you doing great work because of you common people know in-depth knowledge of investment and earnings from traditional way to more scientific,
Special Thank Vivek sir your short video for guidance when nifty at life time high recently You guide us thoda wait karlo Crude oil, us bonds , mid cap small cap many things you explained And after 2-3 days market down Your great teacher sir
Great Video (as always!). Thanks for selfless knowledge sharing! I do have few queries though: 1. When do you write the call option for any stock, begening of the series or second week or later? 2. Incase it happens that after writing the call the stock falls and the call loses most of its value, then do you move the call down within the month? 3. Lastly you said you use margin from stock pleaging to sell calls, but my understanding is that currently you have to use atleast 50% margin in form of cash or cash equivalents. Please clarify 👃
The one good thing about you sir, you don't echo in between when a guest is expressing and explaining, I mean you don't interrupt and repeat his words, this makes the listeners and viewers focus and learn. Good host you are sir. Continue doing it. 👍🏻
When you pledge shares you get 80% or so as margin money. In case you use that 80% margin money brokers charge you interest (eg., Kotak Securities charge 17.99%) so for one crore you pay (appx 4900 per day) you have to deduct that amount also from the profit, if any you generate. Your effective return becomes less
Looks good, but in actual market things go differently .. You have to give delivery of shares if your share value goes above your call strike price(this is what covered call means). In bull run this always happens (example market conditions after March 2023). So at the end you almost have no investment left in bull run. Then you start selling puts and when market goes in bearish mode you have to take deliveries, which you will have to hold till bottom is created, & wait for your price to comeback, till then you have to sit tight without selling any calls..😅..(and only looking at your loss till bull bhai returns )..😂 Some what Solution to this you have to divide your folio into 2 parts, 1. long term investment (so you remain invested in market) and 2. For cover calls. But, this is very capital intensive. Not everyone can afford.
Very well summarised. In fact it will be advised to people on how to predict a direction. If they succeed even for 60% it will end up in good money. Additionally, the guest is referring to an outdated approach that was common 10 years ago. Nowadays, with the abundance of data and software tools available, it's much easier to identify market trends. Lastly, I would emphasize the importance of generating significant returns in major stocks, consistently taking profits, and reinvesting in a strong portfolio of stocks. This strategy will not only help you beat inflation but also outperform the market.
A couple of things. A cash component (pledging debt instruments if not cash with the broker) is required to the extent of 50% of the margin. So it is not only pledging of stocks bought. This strategy needs involvement. An alternate is to hold a basket of stocks and sell NIFTY OTM CE, though this wouldn't map 1:1 between stocks and the NIFTY Index. The return would be less compared to selling stock CE, but definitely less stressful.
that is correct sir. Most funds are globally selling index options only as it is easier and less active management is required. There are very limited funds globally which are selling options on stocks. We are one of the very very few funds doing this actively and the only one in India as per our knowledge.
Vivek bhai thanks a lot to arranging such face 2 face interviews for new investors. I request and suggest you to open a fund on same strategies where a small investors upto 5 lakks can invest in such schemes.
Nice video... I am aleady doing this strategy apart from option writing. But this video approved my strategy and motivate me to do this consitently for long term. Thank you.
@32:15 - Power of compounding looks very attractive when you put the numbers. But remember you achieve that number only by reinvesting every penny every time when it's drawn out. and I think it is not very easy to achieve the same number for every investment you make. That said, if you are looking for 12% compounding, you should try for at least 15% so that difference will help covering the losses from bad investments. So I think wealth creation is not as easy as we understand or perceive from these videos/slides. However, one should have the investor mentality, like Mr. Vineet Jainn, towards wealth creation.
rightly said. Getting a product with higher returns is not easy. We are trying to educate investor to shift money from the safe, fd/ debt segment investments when the chips are down, when the market is correcting, especially if market has given -ve returns for 2 years in a row. It is easier to say this in context of India, where we have high chances of witnessing long term growth. In many countries, investing after 2 years of correction may still not be a good time to invest.
@@VineetJainn thanks for sharing your experience with us. It was really helpful. Could you please share any of your social media platforms where I can chat with you? I tried Twitter but I couldn't find the message option.
When an ATM call option becomes ITM at expiration, we are required to take delivery of the underlying shares. If the shares are pledged, we must have sufficient cash in our account to cover the delivery. If the market drops by more than 3%, we can no longer open a covered call by selling call options. I believe the stock could fall by up to 50%, and it may take 3 to 4 years to recover. Therefore, it’s better to write covered calls when the stock has fallen by more than 15%, but only on stocks with strong fundamentals and in solid industry sectors.
❤❤❤❤❤ The session is very good from psychology point of view. But in terms of learning the value is pretty less. This was like invitation for mf subscription. There are many unique strategies in market and you are not the first doing this. The strategy is similar to dr.ranjeet mohanty ka the wheel strategy, featured of f2f earlier, where he has advised to remain quite if your stock value goes down too deep. And again sell call when it comes to cost. He also call it cash secured put selling. There is another youtuber manoj kumar jain , MKJ, who is doing this kind of stuff sinse last 3-4 years teaching fund management with ROI management. The question here is why jainn saab has given half hearted knowledge, he missed it by mistake but why other learnrrs on the desk also did not ask that how he will manage the position if the price of the underlying goes down too much. Here which call option will be sold in second month? Or he will wait for price to arrive at cost? I am also practicing option selling from last 1 year but a little differently generating same amount of return by mixing different strategies learnt from f2f !!
rightly identified @starmaili, if the price of the underlying goes down too much, it is a drag on the portfolio. We at fund level always try to be adept in following the technical indicators, but still cannot prevent the M2M losses from a sudden drop in the stock price. As you have rightly indicated, this is the biggest challenge on the covered call portfolio. The way we have been able to reduce these kind of losses 1. is by diversifying the portfolio to more than 50 stocks. 2. is to make that the stock we invest in has strong fundamentals 3. we invest in a staggered manner in a stock and rarely do we go fully invested in the stock in one instance
@@vineet1973 thanks for the clarification Jainn Saab🙏this means this strategy is not for retailers or hni's without technical knowledge. Retailers with decent fund size can succeed with CASH COVERED NAKED PUT SELLING, where roll over is possible at every point of time. I hope you will work on this and bring for retailers with fund size minimum 10 lakhs. With a fund of 1 CR if we sell puts 30-35 days time left, 15 lots with earning around 10k each, investment in margin around 30 lakhs and rest reserved, we can make 1.5 % per month guaranteed on total capital involved (1cr). This calculation being on the conservative side. Most of us who invest in 2bkh flats worth rs.1cr are happy with 20-25 k rent per month. I want you to reach investors with this calculation which will really help many. I hope you are not offended by my comments and will take my warm regards 🙏
@@vineet1973sir, when your call sold becomes ITM and as you mentioned that you don't sell the stock to book profits- do you book the loss in the call and resell another call following month?
pretty much the strategy i follow for myself. Except that i also buy faaar OTM CE at piddly sums to cover inordinate spikes. Also i sell PEs n cover with slightly far otm so i cover my loss in case of excessive drops. Problem is IVs. Most bluechip straddles are giving barely 4% nowadays🙏
@@truthprevails3751 viveks video is self explanatory sir. Put up the money, buy a lot or future, sell slightly otm CE. But first learn the basics. Without learning basics if u do will be harakiri. 🙏
There will be margin issues also in the last week if the underline gets in the money, and though we can pledge shares and get margin but cash component is also required. All these will affect returns, but i do understand that this is good strategy and extra returns are generated. Some discretionary measures can even enhance returns.
I have one doubt... Suppose I have 400 units of Kotakbank @ 1700 and I sell 1800 CE @ Rs. 10. So if Kotakbank's price goes up by 10%, the share price is appreciated but I'll face a loss in the Call option. 1. At the end of the month, if I exercise the call option I have to sell the shares @ 1800 plus I'll receive the premium. So, net Rs. 110 profit per share times 400 shares. 2. If I don't exercise the option and sell the shares in the open market, I'll sell the shares @ Rs 1870 and have a profit of Rs. 170 per share in cash but the CE will have a value of Rs. 70 i.e. I'll make a loss of Rs 60 per share in F&O. So, net Rs. 110 profit per share. But, I think sir has considered the option premium + total appreciation in cash market and has not considered the loss in CE if it becomes ITM (In The Money). Please rectify if I'm wrong.
They count profit on expiry date. If you have bought at 1700 and had short of 1800 spot ce @ 10 rs then if share goes up you cant get profit more than 110 rs per share. But if share goes more than 1810 you may roll over the ce short position for next month. If you wanna take less risk then after expiry share price goes up too 1820 then your loss in ce will be 10 rs. But you can further short ITM or ATM ce for next month. Its premium will be more than 40 rs for sure.
Quick question If price goes above the strike price then our profit is the only option premium we received right because we have to either sell it in the market or buy the call option. Correct me if I'm getting it wrong.
What if say our stock fell by 10%, we are now sitting in 10% loss in equity ut we made some 3% in call sold. What to do now, sell call again, but premium are too less..
Good hosting, asked the right questions and very good info shared by the speaker. The only question I had for the speaker is - how do they select the stocks?
the stocks are primarily selected on 1. Should be part of the Futures and Options segment 2. Fundamentally they should not have very high valuations as per the sector, we avoid high PE stocks in FMCG, Engg, Realty, IT sector or have very low position in them 3. Based on the expected and current industry performance the stocks are picked keeping in mind reasonable PEs, divident paying companies, higher growth expected and reasonable market sentiment, or some events or triggers 4. Technicals are used to do chose the right entry into the stock. 5. Investment is done in the selected stock in a staggered manner (examples of trigger) If elections are favourable for the current ruling party, the PSU with reasonable Price / Book will do well If interest rates are reducing, banking and financial have more chances of doing well
Vivek ji, this one face2face is indeed very good. I suggest small investors to buy 1250 nos of nifty-bees and sell one call option 300 points above the nifty 50 spot price. This will give good return.
Call option of Nifty 50 monthly expiry. One should sell it once PCR is below 1 and the value of the option approximately 1% per week of the value of the niftybees on the day.
Vineet Sir, You are talking about options for one month, I am from Canada. I am investing in funds that are doing daily options which are available on S&P 500,NASDAQ and Russell 2000 indexes. Funds are JEPY, QQQY and IWMY. There are more and more funds coming with there options.
Hello thanks sir for sharing your knowledge and experience with us.. i have doubt, please let me knw ,what to do when the stock orice rises above the cover call strike price? As call option will goes on increasing..and more and more loss...should i sell the stock? Or exit call option or something else
This isn't as simple as it sounds. The speaker is talking about ( though glossing over the complexity involved) the following things: 1. Picking right stocks from the derivatives universe using technofunda analysis. Else, fall in stock price will more than negate the gains in covered call. 2. If there's a spike in the stock, taking futures position. 3. Selling cash secured puts. 4. Keeping cash in the portfolio to meet cash equivalent margin need. My suggestion to retail investors is not to blindly implement covered calls.
Thank you for identifying all above points very clearly and correctly. 👌 Adding to Point 2 If there's a spike in the stock, taking futures position > selling in Future's segment rather than cash segment
Want to become a Successful Multi Asset Trader? Be a part of 6+6 month trading mentorship program by Elearnmarkets with 5 mentors & 5 associates. To know more, fill the form at - elearnmarkets.viewpage.co/TH-cam-TMP or call our team at +91 89024 75221
The best thing about Mr. Vivek Bajaj in these videos are the questions he asks, like a novice. Despite having so much knowledge in the areas of markets and investment he doesn't express them so that anyone who watches these videos understands them in depth. Wonderful!!! Thank you :)
Great concept of the HNIs and fund houses now made available for the common man, kudos to you sirji.......... a common man's salute
Thanks Vivek Ji & Vineet Sir
Great to see you and very happy
This is trimendous learning class
We are glad it helped. Do Like, Share & Subscribe for more such content.
Covered call is best strategy with Minimum risk. Going to deploy this in NiftyBees. As I am doing analysis of this strategy for last 8 months. Thank you Vivekji for valuable session.
could u pls share ur analysis.
thanks a lot...
One of the best conversation i have come across and the topic is highly appreciated.. Creating wealth by covered call is really amazing and Vineet Jain ji has given awsome information.. Thank you Vivek Sir.. Love your topics always....
thank you sir for your kind comments!
Hello Sir I want to contact you.
Wonderful session. He validated for me everything that I have been doing since last few months.
Vineet Jain Sir thanks for sharing great wisdom & special thanks to Vivek Sir & team for making this happen
Vivek sir you doing great work because of you common people know in-depth knowledge of investment and earnings from traditional way to more scientific,
Vinit Ji, its a great learning. Vivek....as usual you always rock with your simplicity and humility.
Amazing....One of the best videos of Face2Face
This is the thing I m using already but learnt something new to enhance my doing. Thanks a lot vivekji
One of the greatest session Sir. Thank you very much sharing these details.
Its only shown the rosy picture but the reality is far far away
Thanks a lot. The concepts are very well explained. I am a full time trader and I will start using this system immediately. I got a direction.
Thanks Vivek and Vinit jain for valuable explanation on cover call
Mr.Bajaj you are doing great job.......
With regards!
Special Thank Vivek sir your short video for guidance when nifty at life time high recently
You guide us thoda wait karlo
Crude oil, us bonds , mid cap small cap many things you explained
And after 2-3 days market down
Your great teacher sir
Very informative video. Thanks for this. One more thing we can add to this return is extra 2-5% of dividend.
One of the best presentation I have watched. Thank you Vivek and Vineet.
thank you for the kind words. Vivek is a great host with lot of insightful questions.
Best Video so far in F2F.
Thank you so much both of you 🙏🙏
Great Video (as always!). Thanks for selfless knowledge sharing! I do have few queries though: 1. When do you write the call option for any stock, begening of the series or second week or later? 2. Incase it happens that after writing the call the stock falls and the call loses most of its value, then do you move the call down within the month? 3. Lastly you said you use margin from stock pleaging to sell calls, but my understanding is that currently you have to use atleast 50% margin in form of cash or cash equivalents. Please clarify 👃
Usefull to all investers .
The one good thing about you sir, you don't echo in between when a guest is expressing and explaining, I mean you don't interrupt and repeat his words, this makes the listeners and viewers focus and learn. Good host you are sir. Continue doing it. 👍🏻
When you pledge shares you get 80% or so as margin money. In case you use that 80% margin money brokers charge you interest (eg., Kotak Securities charge 17.99%) so for one crore you pay (appx 4900 per day) you have to deduct that amount also from the profit, if any you generate. Your effective return becomes less
your observation is correct.
For intraday they dont charge any interest @@VineetJainn
Great great sir wonderful learning thanks both of you and team
One of the best face 2 face interactions. Vineet ji all the best
thank you🙏
Looks good, but in actual market things go differently ..
You have to give delivery of shares if your share value goes above your call strike price(this is what covered call means). In bull run this always happens (example market conditions after March 2023). So at the end you almost have no investment left in bull run. Then you start selling puts and when market goes in bearish mode you have to take deliveries, which you will have to hold till bottom is created, & wait for your price to comeback, till then you have to sit tight without selling any calls..😅..(and only looking at your loss till bull bhai returns )..😂
Some what Solution to this you have to divide your folio into 2 parts, 1. long term investment (so you remain invested in market) and 2. For cover calls.
But, this is very capital intensive. Not everyone can afford.
Very well summarised. In fact it will be advised to people on how to predict a direction. If they succeed even for 60% it will end up in good money.
Additionally, the guest is referring to an outdated approach that was common 10 years ago. Nowadays, with the abundance of data and software tools available, it's much easier to identify market trends.
Lastly, I would emphasize the importance of generating significant returns in major stocks, consistently taking profits, and reinvesting in a strong portfolio of stocks. This strategy will not only help you beat inflation but also outperform the market.
Very useful and informative. 👏🏻👏🏻👏🏻
सभी को दीपावली की अग्रिम हार्दिक शुभकामनाएं।
शुभ धनतेरस।
हमेशा की तरह अच्छा ज्ञानवर्धक वक्त गुजरा। विनीत जी का व्याख्यान आकर्षक रहा।🎉🎉❤
Very very good session... I think one of the best overall view of share market
Great video, very informative from a great person Vineet jain
A couple of things. A cash component (pledging debt instruments if not cash with the broker) is required to the extent of 50% of the margin. So it is not only pledging of stocks bought. This strategy needs involvement. An alternate is to hold a basket of stocks and sell NIFTY OTM CE, though this wouldn't map 1:1 between stocks and the NIFTY Index. The return would be less compared to selling stock CE, but definitely less stressful.
that is correct sir. Most funds are globally selling index options only as it is easier and less active management is required.
There are very limited funds globally which are selling options on stocks.
We are one of the very very few funds doing this actively and the only one in India as per our knowledge.
Which brokers allow covered calls on stocks. Zerodha does not
Thanks you Bajaj sir for bringing one more insightful session on wealth creation.thank you Jain saab for sharing your insights and knowledge 🎉👏🏻👏🏻👏🏻
thank you for the kind words
It was a great Learning Sir, Thank You Vivek Sir
Vivek bhai thanks a lot to arranging such face 2 face interviews for new investors. I request and suggest you to open a fund on same strategies where a small investors upto 5 lakks can invest in such schemes.
This is right concept, I am 6 months to same strategy.
Thanks dear sir 🙏
Good knowledge 👍
Vivek ji, mazha agayaa..., u r right.
We need more people like him...
thank you so much for the kind words.
Nice video... I am aleady doing this strategy apart from option writing. But this video approved my strategy and motivate me to do this consitently for long term. Thank you.
Absolutely marvellous strategy, thanks a million for sharing with us
Great session,Hats off
Thank you for watching the video. Do Like, Share & Subscribe.
Very well explained and conceptualised. Thank you @vivekbajaj for bringing this to us. Your content is amazing
Thank you for a great session!
@32:15 - Power of compounding looks very attractive when you put the numbers. But remember you achieve that number only by reinvesting every penny every time when it's drawn out. and I think it is not very easy to achieve the same number for every investment you make. That said, if you are looking for 12% compounding, you should try for at least 15% so that difference will help covering the losses from bad investments. So I think wealth creation is not as easy as we understand or perceive from these videos/slides.
However, one should have the investor mentality, like Mr. Vineet Jainn, towards wealth creation.
rightly said. Getting a product with higher returns is not easy. We are trying to educate investor to shift money from the safe, fd/ debt segment investments when the chips are down, when the market is correcting, especially if market has given -ve returns for 2 years in a row. It is easier to say this in context of India, where we have high chances of witnessing long term growth. In many countries, investing after 2 years of correction may still not be a good time to invest.
@@VineetJainn thanks for sharing your experience with us. It was really helpful. Could you please share any of your social media platforms where I can chat with you? I tried Twitter but I couldn't find the message option.
BAJAJ SAHIB YOUR GREAT I HAVE SEEN MANY OF YOUR FACE 2FACE, WHICH WERE VERY MUCH HELPFUL THANKS AGAIN
Glad it was helpful! Do Like, Share & Subscribe for more such content.
Amazing inputs 🎉
When an ATM call option becomes ITM at expiration, we are required to take delivery of the underlying shares. If the shares are pledged, we must have sufficient cash in our account to cover the delivery. If the market drops by more than 3%, we can no longer open a covered call by selling call options. I believe the stock could fall by up to 50%, and it may take 3 to 4 years to recover. Therefore, it’s better to write covered calls when the stock has fallen by more than 15%, but only on stocks with strong fundamentals and in solid industry sectors.
Guruji ji pranam 🙏🙏🙏 thanks for your wishes valuable information analysis for us free of cost 🙏🙏🙏🙏🙏 God bless you always 🙏🙏🙏🙏🙏🙏🙏🙏🙏
Super video. Thanks
Great learning great earning sir Thanks a lot involving fund
What learning?
Kya shika aap?
This is basically a marketing & advertisement video.
100% good Vivek Bajaj ji share bazar me risk hai hi nahi
Mai bhi Black Rock chalata hu😊😊😅😅
Maine bhi Harshad Mehta ko stock operate krna sikhaaya tha , tmhe bhi sikhna h to join kr lo limited seat h
Are ye bache kis baat PE ladai kar rhe.
@@KnottyLawyers operator bana hai mujhe
Are bhai ye kya ho rahaa hain. Garibon ko dedo
Amazing presentation
Very informative talk by Vineet Jainn
Excellent podcast very helpful sir
❤❤❤❤❤
The session is very good from psychology point of view. But in terms of learning the value is pretty less. This was like invitation for mf subscription.
There are many unique strategies in market and you are not the first doing this.
The strategy is similar to dr.ranjeet mohanty ka the wheel strategy, featured of f2f earlier, where he has advised to remain quite if your stock value goes down too deep. And again sell call when it comes to cost. He also call it cash secured put selling.
There is another youtuber manoj kumar jain , MKJ, who is doing this kind of stuff sinse last 3-4 years teaching fund management with ROI management.
The question here is why jainn saab has given half hearted knowledge, he missed it by mistake but why other learnrrs on the desk also did not ask that how he will manage the position if the price of the underlying goes down too much. Here which call option will be sold in second month? Or he will wait for price to arrive at cost?
I am also practicing option selling from last 1 year but a little differently generating same amount of return by mixing different strategies learnt from f2f !!
rightly identified @starmaili, if the price of the underlying goes down too much, it is a drag on the portfolio. We at fund level always try to be adept in following the technical indicators, but still cannot prevent the M2M losses from a sudden drop in the stock price.
As you have rightly indicated, this is the biggest challenge on the covered call portfolio.
The way we have been able to reduce these kind of losses
1. is by diversifying the portfolio to more than 50 stocks.
2. is to make that the stock we invest in has strong fundamentals
3. we invest in a staggered manner in a stock and rarely do we go fully invested in the stock in one instance
@@vineet1973 thanks for the clarification Jainn Saab🙏this means this strategy is not for retailers or hni's without technical knowledge.
Retailers with decent fund size can succeed with CASH COVERED NAKED PUT SELLING, where roll over is possible at every point of time. I hope you will work on this and bring for retailers with fund size minimum 10 lakhs.
With a fund of 1 CR if we sell puts 30-35 days time left, 15 lots with earning around 10k each, investment in margin around 30 lakhs and rest reserved, we can make 1.5 % per month guaranteed on total capital involved (1cr). This calculation being on the conservative side.
Most of us who invest in 2bkh flats worth rs.1cr are happy with 20-25 k rent per month. I want you to reach investors with this calculation which will really help many.
I hope you are not offended by my comments and will take my warm regards 🙏
@@vineet1973sir, when your call sold becomes ITM and as you mentioned that you don't sell the stock to book profits- do you book the loss in the call and resell another call following month?
Very Good video sir,
Vivek sir keep it up 🎉🎉❤❤
thanks for the contribution
pretty much the strategy i follow for myself. Except that i also buy faaar OTM CE at piddly sums to cover inordinate spikes. Also i sell PEs n cover with slightly far otm so i cover my loss in case of excessive drops. Problem is IVs. Most bluechip straddles are giving barely 4% nowadays🙏
Hi
Can you please guide me how you are exactly doing??
@@truthprevails3751 viveks video is self explanatory sir. Put up the money, buy a lot or future, sell slightly otm CE. But first learn the basics. Without learning basics if u do will be harakiri. 🙏
There will be margin issues also in the last week if the underline gets in the money, and though we can pledge shares and get margin but cash component is also required. All these will affect returns, but i do understand that this is good strategy and extra returns are generated. Some discretionary measures can even enhance returns.
Very conveniently glossed over by the speaker.
@@dhirajsinha2001this video is completely lacking the risk management which is the most imp part...hahaha
great knowledge gained......
Thanks vivekji for this wonderful face2face.
HEARTIEST GRATITUDE FOR YOUR KINDNESS TOWARDS SHARING VALUABLE INFORMATION
I have one doubt...
Suppose I have 400 units of Kotakbank @ 1700 and I sell 1800 CE @ Rs. 10. So if Kotakbank's price goes up by 10%, the share price is appreciated but I'll face a loss in the Call option.
1. At the end of the month, if I exercise the call option I have to sell the shares @ 1800 plus I'll receive the premium. So, net Rs. 110 profit per share times 400 shares.
2. If I don't exercise the option and sell the shares in the open market, I'll sell the shares @ Rs 1870 and have a profit of Rs. 170 per share in cash but the CE will have a value of Rs. 70 i.e. I'll make a loss of Rs 60 per share in F&O. So, net Rs. 110 profit per share.
But, I think sir has considered the option premium + total appreciation in cash market and has not considered the loss in CE if it becomes ITM (In The Money). Please rectify if I'm wrong.
I have the same question
i don't get one thing, where is the 'option' to exercise when you are the option seller?
i think he has..the 5% gain in equity he was showing was in the case where he has sold OTMs which are 5% far from current price
You are right
They count profit on expiry date. If you have bought at 1700 and had short of 1800 spot ce @ 10 rs then if share goes up you cant get profit more than 110 rs per share. But if share goes more than 1810 you may roll over the ce short position for next month.
If you wanna take less risk then after expiry share price goes up too 1820 then your loss in ce will be 10 rs. But you can further short ITM or ATM ce for next month.
Its premium will be more than 40 rs for sure.
Vivek bajaj ji good job
Quick question
If price goes above the strike price then our profit is the only option premium we received right because we have to either sell it in the market or buy the call option.
Correct me if I'm getting it wrong.
Great जॉब done vivek bajaj
What a knowledgeable person
thank you for your kind comments.
Excellent video
very good & informative.
What if say our stock fell by 10%, we are now sitting in 10% loss in equity ut we made some 3% in call sold. What to do now, sell call again, but premium are too less..
This is basically a advertisement & marketing video. Nothing about CC or its adjustment is covered.
Intersting person ❤
Nice one.
I used to do it on regular basis.
Good hosting, asked the right questions and very good info shared by the speaker. The only question I had for the speaker is - how do they select the stocks?
the stocks are primarily selected on
1. Should be part of the Futures and Options segment
2. Fundamentally they should not have very high valuations as per the sector, we avoid high PE stocks in FMCG, Engg, Realty, IT sector or have very low position in them
3. Based on the expected and current industry performance the stocks are picked keeping in mind reasonable PEs, divident paying companies, higher growth expected and reasonable market sentiment, or some events or triggers
4. Technicals are used to do chose the right entry into the stock.
5. Investment is done in the selected stock in a staggered manner
(examples of trigger)
If elections are favourable for the current ruling party, the PSU with reasonable Price / Book will do well
If interest rates are reducing, banking and financial have more chances of doing well
Sir, It's nice video for long term investment.
yes this is for long term investment, with added returns due to call option writing
Hi, Dividend from the stock holding should also be added in these calculation
Vineet sir
What a voice yu have
Great in one go I watched this video
thank you so much 🙏
That's the Most important point "Timing of Being Invested"
Sir,When all investmented in share of company insted of buying products of that company,Than how can it's say
Thank you sir
When stock down
And we are not at atm
So which call option sell
Great knowledge sir
Vivek ji, this one face2face is indeed very good. I suggest small investors to buy 1250 nos of nifty-bees and sell one call option 300 points above the nifty 50 spot price. This will give good return.
@@ShorthandLearningsir, nifty CE. Because we are holding niftyBees.
how come 1250 niftybees? 1 lot of nifty is equivalent to 4500 niftybees approx
Call option of Nifty 50 monthly expiry. One should sell it once PCR is below 1 and the value of the option approximately 1% per week of the value of the niftybees on the day.
Guru ji pranaam 🙏🙏🙏
Vineet Sir, You are talking about options for one month, I am from Canada. I am investing in funds that are doing daily options which are available on S&P 500,NASDAQ and Russell 2000 indexes. Funds are JEPY, QQQY and IWMY. There are more and more funds coming with there options.
that is right. In India weekly options are available only on the the Bank Nifty and Nifty.
Bahut Sundar sir
I am last 6 year to play this statargy ❤❤ thank you sir
Playing covered calls?
Can I contact you regarding this matter?
Love you sir ❤️
Hi Sir which broker allows u to do 100 percent pledge on your shares for covered call without 50% cash margin
50% margin + 50% cash is required. It was an error on our end not to mention it clearly. Apologise.
how to buy volvin growth fund , what is the minimum capital required
Wonderful. Thanks
great and honest sir
thank you for your kind comments.
mesmerizing video. amazing knowledge bank
Equity returns + covered call + DIVIDENDS= define your Career for life ...
looking forward to great learning
Hello thanks sir for sharing your knowledge and experience with us.. i have doubt, please let me knw ,what to do when the stock orice rises above the cover call strike price? As call option will goes on increasing..and more and more loss...should i sell the stock? Or exit call option or something else
Jhakash.....🎉
super knowledge
Super🎉🎉❤❤
This isn't as simple as it sounds. The speaker is talking about ( though glossing over the complexity involved) the following things:
1. Picking right stocks from the derivatives universe using technofunda analysis. Else, fall in stock price will more than negate the gains in covered call.
2. If there's a spike in the stock, taking futures position.
3. Selling cash secured puts.
4. Keeping cash in the portfolio to meet cash equivalent margin need.
My suggestion to retail investors is not to blindly implement covered calls.
Thank you for identifying all above points very clearly and correctly. 👌
Adding to Point 2 If there's a spike in the stock, taking futures position > selling in Future's segment rather than cash segment
@@vineet1973 they buy Futures in such cases.
This is basically a advertisement & marketing video. Nothing about CC or its adjustment is covered.