دکتر ارنست

دکتر ارنست



*******Covered Call Strategy in Indices****** Here will Explain Covered call strategy in indices for monthly returns we can expect 12 to 14% returns per year. This is for who are not active in trading and having sufficient capital and expecting fixed returns from markets.

will explain for bank bees you can calculate for nifty bees . Niftybees = Nifty Bankbees = Bank Nifty Managed by Nippon asset management. Price of the etfs are slightly higher than than the spot prices because they include dividend pay out of the stocks..

Bank nifty spot closing price on oct 14th = 39305 Bank bees closing price = 397.86 Bank nifty 1 lot = 25 So multiply lot size * Spot price = 25*39305 = 982625 bank bees quantity = 982625/397.86 = 2469.77 ==> 2470 So you should buy 2470 quantities.

you can do monthly options for better returns in long run. Nov month 39500 call trading at 1200 rs. Case 1:- if you sell 39500 ce at 1200 rs . If market close below 39500 in nov series you will get 1200*25 = 30000 rs profit .

Case 2:- If market close for ex: 40000 . Means 500 points ITM . Profit = Your collected premium - ITM = 1200-500 ==> 700 700*25 = 17500 rs profit.

Case 3:- If market close for ex: 42000 . Means 2500 points ITM . loss = ITM - Your collected premim = 2500 - 1200 ==>1300 1300*25 = 32500 rs loss. Your playing on indices so indices wont move one direction .

So in last case you booked loss then immediately sell dec month 42000 call(ATM) so that chances are high for booking profits for dec month. This should be execute when RSI is above 50 means not over sold . Other wise market will go up only.

If RSI is below 30 we can execute cash secured put strategy for fixed returns. Most of the active traders doing this for monthly returns they just invest in bees and pledge those bees and trading actively. Happy learning and Happy weekend . 😍😍

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