Commercial properties don’t yield “dividends”. It’s called Net Operating Income (NOI). Also, investing in CRE has much greater benefits than what trading options on equities/futures can ever yield (e.g. significant tax advantages, forced appreciation ability, truly passive cash flow as a property management company operates the property, etc). This is not possible with you trading financial market derivatives. However, trading financial derivatives can make you a multi-millionaire or billionaire a lot quicker, yet requires a lot of self-refinement discipline and much diligent mindset optimization.
Hi Ajay If the call option is expiring ITM, do we need to exercise the selling of stocks before expiry date or can we leave both (stock and option) for expiry???
@@marketfeedbyShariqueSamsudheen what will be the outcome of settlement??? Will I be having 1 lot of stocks at new buy price that’s the option strike price from next working day onwards or zero stocks with cash settled from next day??
Hi, lets say if the underlying price is about to reach our strike price can we sell it before thr expiry day or do we need to leave it to settlement as mentioned above?
Hi Ajay. Currently Im holding 5000 shares in federal bank. What if I do sell a call option and price crosses the strike price plus premium. Then what are the procedure to exercise this after the expiry. Does my broker deduct it automatically or do I need to do anything for that.
In the entire UA-cam all are talking about what is the covered call option but none of them are talking about the practical side. Like how they will deduct if it hits the strike price.hope you'll have an answer.
If the price crossed your strike, and the stock is not pledged, it will automatically get sold from your account. Your profit in that case will be how much the stock has moved up. For us, we bought HDFC Bank at 1500 and Sold 1700CE If price reaches 1800, Profit on stock = Rs 300 Loss on call option sell = 100 - Premium Total profit = 200 + Premium Collected
Yes, it can be used to a certain extent. But two things to note: 1. Margin required for selling options would be around 1L. You will have a lot of unused margin since you will pledge nearly 7-8L worth of stock. 2. There is a 50-50 margin rule to be followed for positional trades. That means if you have to sell options worth 1L: 50k can be from pledged margin, the remaining 50k needs to be cash. I've explained this in detail in another video, you can search "Pledging marketfeed" on UA-cam
@@marketfeedbyShariqueSamsudheen 1. Sure. Out of a total margin of 7-8L, I can use 1-2L for covered calls and the rest for any other strategies. 2. Most people are ill informed about the SEBI's 50-50 rule. SEBI requires the broker to place atleast 50% cash value of the pledged margin either through client collateral or proprietary collateral. Most brokers pass on this margin requirement to clients but some platforms like ICICI Direct doesn't. You can get margin of Rs. 90k if you pledge shares worth Rs. 1L.
If the price falls, it will cause a unrealised loss in your portfolio. But the sold call option still gives a profit With what we are doing now, HDFC Bank: Buying price = 1500 Call Premium collected = 7 If stock falls to 1300, Unrealised Loss = 200 * Quantity Realised Profit on Call Option = 7* Quantity
How so? As a seller we have OBLIGATION to sell. But we already have the stock sitting there in the demat. So wouldn't it be automatically sold off to the option buyers provided they exercise the option?
I sold put option of mahindra at 1650 and got it delivered. Premium collected was 20000. Then i sold 1750 call of mahindra ans collected 20000. It got sold at 1750 and i collected premium plus 35000.
Not a very good explanation. Could be better if shown real screen of option buying or selling method. Looks like more importance give to viewers and viewing time. Any ways good try.
ajay looks like an AI Robot
😂
Yoo.. Very true
He has good glowing skin that's why
Where is sharique, why is he doesn't appeared in this channel nowadays????
Nice video. Pros & cons explained neatly. Thanka a lot. Can we choose L&T or SBI for covered call stratagy. Awaiting for your reply
Very nice explanation of the strategy,I didn't know it in detail...
Commercial properties don’t yield “dividends”. It’s called Net Operating Income (NOI).
Also, investing in CRE has much greater benefits than what trading options on equities/futures can ever yield (e.g. significant tax advantages, forced appreciation ability, truly passive cash flow as a property management company operates the property, etc).
This is not possible with you trading financial market derivatives.
However, trading financial derivatives can make you a multi-millionaire or billionaire a lot quicker, yet requires a lot of self-refinement discipline and much diligent mindset optimization.
He completely complicated the strategy 😅 as much as possible by him.
But which broker in india provides collateral margin for covered call? Zerodha does not provide collateral margin for covered call .
Much awaited video😍
Good explanation bro
Nice info,was looking for it for some time..Any plans for it to be included in algo..
Pls make your existing algo profitable.. no change in last one year
Bro u need to learn first; the biggest return here we get is from……. Find it out urself 😂 but its definitely not covered call
Thank you ajay…..🤩
Hi bro instead of talking talking all the time please use pics or chart to explain it will be beneficial for us and thanks for your consideration
Will do that ❤️
We have to buy the ticket size to do this right?. And here we can avoid the unlimited loss automatically right?
Yes
Hi Ajay
If the call option is expiring ITM, do we need to exercise the selling of stocks before expiry date or can we leave both (stock and option) for expiry???
If the stock is pledged, make sure you unpledge it. Otherwise you can leave both for expiry, it will get settled
@@marketfeedbyShariqueSamsudheen what will be the outcome of settlement??? Will I be having 1 lot of stocks at new buy price that’s the option strike price from next working day onwards or zero stocks with cash settled from next day??
@@unratheeshin covered call you are selling the stock at strike price. You will be getting the selling amount plus the premium collected
Hi, lets say if the underlying price is about to reach our strike price can we sell it before thr expiry day or do we need to leave it to settlement as mentioned above?
Hi Ajay. Currently Im holding 5000 shares in federal bank. What if I do sell a call option and price crosses the strike price plus premium. Then what are the procedure to exercise this after the expiry. Does my broker deduct it automatically or do I need to do anything for that.
Plz reply.
In the entire UA-cam all are talking about what is the covered call option but none of them are talking about the practical side. Like how they will deduct if it hits the strike price.hope you'll have an answer.
If the price crossed your strike, and the stock is not pledged, it will automatically get sold from your account. Your profit in that case will be how much the stock has moved up.
For us, we bought HDFC Bank at 1500 and Sold 1700CE
If price reaches 1800,
Profit on stock = Rs 300
Loss on call option sell = 100 - Premium
Total profit = 200 + Premium Collected
Thank you so much Ajay. God bless you.
Howmany nifty bees should we hold to sell one lot of nifty covered call. Now nifty lot size has changed to 25.
(Current nifty50 price*25)/current nifty bees price
2500 nifty bees shares
Can we pledge the shares of the underlying and use the same margin for selling the options of the same asset?
Yes, it can be used to a certain extent. But two things to note:
1. Margin required for selling options would be around 1L. You will have a lot of unused margin since you will pledge nearly 7-8L worth of stock.
2. There is a 50-50 margin rule to be followed for positional trades. That means if you have to sell options worth 1L: 50k can be from pledged margin, the remaining 50k needs to be cash. I've explained this in detail in another video, you can search "Pledging marketfeed" on UA-cam
@@marketfeedbyShariqueSamsudheen
1. Sure. Out of a total margin of 7-8L, I can use 1-2L for covered calls and the rest for any other strategies.
2. Most people are ill informed about the SEBI's 50-50 rule. SEBI requires the broker to place atleast 50% cash value of the pledged margin either through client collateral or proprietary collateral. Most brokers pass on this margin requirement to clients but some platforms like ICICI Direct doesn't. You can get margin of Rs. 90k if you pledge shares worth Rs. 1L.
Thank you
Cash secured puts also plz
Disable music
Where do you take trading classes.
We are not having any trading courses for more than a year
I am trying to transfer some shares from groww to zerodha account using cdsl easiest, but the shares aren't getting transferred. Any idea?
I did it from Zerodha to Fyers one year before successfully…
Have you watched this video? It explains how to transfer using CDSL Easiest: ua-cam.com/video/7nTWit9EA-8/v-deo.html&ab_channel=marketfeed
Athishakthamm ❤😍
What will happen if the stock price goes to 1300 ?
If the price falls, it will cause a unrealised loss in your portfolio. But the sold call option still gives a profit
With what we are doing now, HDFC Bank:
Buying price = 1500
Call Premium collected = 7
If stock falls to 1300,
Unrealised Loss = 200 * Quantity
Realised Profit on Call Option = 7* Quantity
what is the % of risk in this strategy?
The biggest risk is the stock falling in itself. That will be your biggest investment
Athishaktham
If this worked you wouldn't be here making videos about it 🤣🤣🤡🌎
We are running the strategy in HDFC Bank with the strikes and prices mentioned
good morning
Content is 2 minutes.
🔥❤
Selling I'd done by lazy rich guys... Strategy not for normal hardworking trader
The harsh truth is "lazy rich guys" make more money from the market than aggressive traders
As a Call option seller (writer). Never forget chance of Unlimited loss. If a bull break out happens.
How so? As a seller we have OBLIGATION to sell. But we already have the stock sitting there in the demat. So wouldn't it be automatically sold off to the option buyers provided they exercise the option?
Since we have the stock, it will not go into unlimited loss. The stock price is also going up
I sold put option of mahindra at 1650 and got it delivered. Premium collected was 20000.
Then i sold 1750 call of mahindra ans collected 20000.
It got sold at 1750 and i collected premium plus 35000.
Not a very good explanation. Could be better if shown real screen of option buying or selling method. Looks like more importance give to viewers and viewing time. Any ways good try.
first
I am not rich so I don't watch