Hi if you are having enough funds to invest..minimum 10 % secured gains per month are possible on sell of covered calls/puts ..read it carefully ...ask ur queries if any ..
kailash Chaturvedi (7/30/2011 1:40:30 PM): i saw idea cellular moved
kailash Chaturvedi (7/30/2011 1:40:38 PM): up
kailash Chaturvedi (7/30/2011 1:40:46 PM): too much
Bossy k (7/30/2011 1:40:49 PM): Ok
Bossy k (7/30/2011 1:40:56 PM): Yes even I saw
kailash Chaturvedi (7/30/2011 1:41:23 PM): and thinking that it will be good to short if start falling
Bossy k (7/30/2011 1:41:43 PM): Ok good thinking
kailash Chaturvedi (7/30/2011 1:41:57 PM): so be ready
Bossy k (7/30/2011 1:42:04 PM): Okk
kailash Chaturvedi (7/30/2011 1:42:06 PM): keep funds ready
Bossy k (7/30/2011 1:42:21 PM): I appreciate ur concerns for the members
kailash Chaturvedi (7/30/2011 1:42:22 PM): and we will make nice gains on it
kailash Chaturvedi (7/30/2011 1:42:37 PM): if it will started
Bossy k (7/30/2011 1:42:43 PM): Okk
kailash Chaturvedi (7/30/2011 1:43:23 PM): and we will try to sell its put too
Bossy k (7/30/2011 1:43:43 PM): Selling put requires margin
kailash Chaturvedi (7/30/2011 1:43:49 PM): for insurance and sefty
kailash Chaturvedi (7/30/2011 1:44:14 PM): ok but u are getting premium na
Bossy k (7/30/2011 1:44:30 PM): I won't be given
kailash Chaturvedi (7/30/2011 1:44:34 PM): lt me explain
kailash Chaturvedi (7/30/2011 1:46:32 PM): see idea closed at 94.75
kailash Chaturvedi (7/30/2011 1:46:43 PM): lot size 4k
Bossy k (7/30/2011 1:46:50 PM): Ok
kailash Chaturvedi (7/30/2011 1:47:05 PM): and 90 pe closed at 2.35
kailash Chaturvedi (7/30/2011 1:47:36 PM): so if we shorted idea at 94
kailash Chaturvedi (7/30/2011 1:47:57 PM): and sold pe 90 at 2.50
kailash Chaturvedi (7/30/2011 1:48:20 PM): u will get 10 k as premium
kailash Chaturvedi (7/30/2011 1:48:28 PM): for 90 pe
kailash Chaturvedi (7/30/2011 1:49:29 PM): if idea will move up to 96.50
Bossy k (7/30/2011 1:49:32 PM): Not able to get
kailash Chaturvedi (7/30/2011 1:49:41 PM): what?
Bossy k (7/30/2011 1:50:03 PM): How is 10K arrived
kailash Chaturvedi (7/30/2011 1:50:10 PM): u will pay for 2 lots
kailash Chaturvedi (7/30/2011 1:50:31 PM): see when u sell
kailash Chaturvedi (7/30/2011 1:50:39 PM): what happens
kailash Chaturvedi (7/30/2011 1:50:49 PM): amount come to u
kailash Chaturvedi (7/30/2011 1:51:04 PM): when u will buy
kailash Chaturvedi (7/30/2011 1:51:14 PM): amount debeted
kailash Chaturvedi (7/30/2011 1:51:20 PM): debited
Bossy k (7/30/2011 1:51:25 PM): Ok
kailash Chaturvedi (7/30/2011 1:51:31 PM): sell amount credited
kailash Chaturvedi (7/30/2011 1:51:38 PM): simple
Bossy k (7/30/2011 1:51:39 PM): Yes
kailash Chaturvedi (7/30/2011 1:51:52 PM): so u are going to sell 90 pe
kailash Chaturvedi (7/30/2011 1:52:00 PM): @ 2.50
kailash Chaturvedi (7/30/2011 1:52:13 PM): so u will get 10 k na
Bossy k (7/30/2011 1:52:19 PM): Yesss
kailash Chaturvedi (7/30/2011 1:52:51 PM): so i m saying we are shorting idea at 94
Bossy k (7/30/2011 1:52:58 PM): Ok
kailash Chaturvedi (7/30/2011 1:53:03 PM): and its 90 put too
Bossy k (7/30/2011 1:53:07 PM): Ok
Bossy k (7/30/2011 1:53:12 PM): I know now
kailash Chaturvedi (7/30/2011 1:53:14 PM): thats all
kailash Chaturvedi (7/30/2011 1:53:27 PM): now further
Bossy k (7/30/2011 1:53:44 PM): But the margin required is that of futures margin for that scrip
kailash Chaturvedi (7/30/2011 1:53:45 PM): if idea will expire at or above 90
kailash Chaturvedi (7/30/2011 1:53:55 PM): yes
kailash Chaturvedi (7/30/2011 1:54:14 PM): but if by paying 50 k
kailash Chaturvedi (7/30/2011 1:54:26 PM): chances to earn 10 k
kailash Chaturvedi (7/30/2011 1:54:29 PM): are there
Bossy k (7/30/2011 1:54:39 PM): So double margin: one for shorting the future & another for selling PE
kailash Chaturvedi (7/30/2011 1:54:50 PM): why to think other way
Bossy k (7/30/2011 1:55:07 PM): Yes?
kailash Chaturvedi (7/30/2011 1:55:23 PM): we are selling future for un secure gains
Bossy k (7/30/2011 1:55:36 PM): Right
kailash Chaturvedi (7/30/2011 1:55:49 PM): but selling options for secured gains
Bossy k (7/30/2011 1:56:01 PM): Okk
kailash Chaturvedi (7/30/2011 1:56:25 PM): if idea will settle at 90.05 on expiry day 10 k will be urs
kailash Chaturvedi (7/30/2011 1:56:48 PM): plus 4 x4k on future too
Bossy k (7/30/2011 1:57:02 PM): If it settles at 96?
kailash Chaturvedi (7/30/2011 1:57:16 PM): then 2k will be gain
kailash Chaturvedi (7/30/2011 1:57:28 PM): and we will rollover
kailash Chaturvedi (7/30/2011 1:57:51 PM): coz we are having 2,50 na
Bossy k (7/30/2011 1:58:00 PM): How 2K will be gain?
kailash Chaturvedi (7/30/2011 1:58:34 PM): see we are planning to sell pe 90 at 2.50 and idea at 94
kailash Chaturvedi (7/30/2011 1:59:02 PM): so on expiry loss i idea 2 rs
Bossy k (7/30/2011 1:59:02 PM): Ok
kailash Chaturvedi (7/30/2011 1:59:12 PM): and gain in pe 2.50
Bossy k (7/30/2011 1:59:16 PM): Ok
Bossy k (7/30/2011 1:59:22 PM): Ok
kailash Chaturvedi (7/30/2011 1:59:27 PM): so 4k x0.50
kailash Chaturvedi (7/30/2011 1:59:29 PM): 2k
kailash Chaturvedi (7/30/2011 1:59:42 PM): we will rollover posn
Bossy k (7/30/2011 1:59:54 PM): Ok
kailash Chaturvedi (7/30/2011 2:00:02 PM): in futures and will make new option sale
Bossy k (7/30/2011 2:00:07 PM): For roll over, what is the cost?
kailash Chaturvedi (7/30/2011 2:00:29 PM): see if current is 48k
kailash Chaturvedi (7/30/2011 2:00:41 PM): rollover will be at 49 k
Bossy k (7/30/2011 2:01:13 PM): How ?
kailash Chaturvedi (7/30/2011 2:01:41 PM): see futures we trade at margin'
Bossy k (7/30/2011 2:01:49 PM): Yess
kailash Chaturvedi (7/30/2011 2:02:07 PM): nifty is at 5400 in 22k
kailash Chaturvedi (7/30/2011 2:02:31 PM): then at 5800 will be at 22.5 k max
Bossy k (7/30/2011 2:02:42 PM): Okk
Bossy k (7/30/2011 2:02:57 PM): Will there be addl brokerage?
kailash Chaturvedi (7/30/2011 2:02:59 PM): where as 400 nifty points equals 20k
kailash Chaturvedi (7/30/2011 2:03:38 PM): in between there will be many chances of book gains
kailash Chaturvedi (7/30/2011 2:04:02 PM): suppose idea fell to 85
kailash Chaturvedi (7/30/2011 2:04:36 PM): ur gain will be 24 k approx
Bossy k (7/30/2011 2:05:08 PM): Okk
kailash Chaturvedi (7/30/2011 1:40:30 PM): i saw idea cellular moved
kailash Chaturvedi (7/30/2011 1:40:38 PM): up
kailash Chaturvedi (7/30/2011 1:40:46 PM): too much
Bossy k (7/30/2011 1:40:49 PM): Ok
Bossy k (7/30/2011 1:40:56 PM): Yes even I saw
kailash Chaturvedi (7/30/2011 1:41:23 PM): and thinking that it will be good to short if start falling
Bossy k (7/30/2011 1:41:43 PM): Ok good thinking
kailash Chaturvedi (7/30/2011 1:41:57 PM): so be ready
Bossy k (7/30/2011 1:42:04 PM): Okk
kailash Chaturvedi (7/30/2011 1:42:06 PM): keep funds ready
Bossy k (7/30/2011 1:42:21 PM): I appreciate ur concerns for the members
kailash Chaturvedi (7/30/2011 1:42:22 PM): and we will make nice gains on it
kailash Chaturvedi (7/30/2011 1:42:37 PM): if it will started
Bossy k (7/30/2011 1:42:43 PM): Okk
kailash Chaturvedi (7/30/2011 1:43:23 PM): and we will try to sell its put too
Bossy k (7/30/2011 1:43:43 PM): Selling put requires margin
kailash Chaturvedi (7/30/2011 1:43:49 PM): for insurance and sefty
kailash Chaturvedi (7/30/2011 1:44:14 PM): ok but u are getting premium na
Bossy k (7/30/2011 1:44:30 PM): I won't be given
kailash Chaturvedi (7/30/2011 1:44:34 PM): lt me explain
kailash Chaturvedi (7/30/2011 1:46:32 PM): see idea closed at 94.75
kailash Chaturvedi (7/30/2011 1:46:43 PM): lot size 4k
Bossy k (7/30/2011 1:46:50 PM): Ok
kailash Chaturvedi (7/30/2011 1:47:05 PM): and 90 pe closed at 2.35
kailash Chaturvedi (7/30/2011 1:47:36 PM): so if we shorted idea at 94
kailash Chaturvedi (7/30/2011 1:47:57 PM): and sold pe 90 at 2.50
kailash Chaturvedi (7/30/2011 1:48:20 PM): u will get 10 k as premium
kailash Chaturvedi (7/30/2011 1:48:28 PM): for 90 pe
kailash Chaturvedi (7/30/2011 1:49:29 PM): if idea will move up to 96.50
Bossy k (7/30/2011 1:49:32 PM): Not able to get
kailash Chaturvedi (7/30/2011 1:49:41 PM): what?
Bossy k (7/30/2011 1:50:03 PM): How is 10K arrived
kailash Chaturvedi (7/30/2011 1:50:10 PM): u will pay for 2 lots
kailash Chaturvedi (7/30/2011 1:50:31 PM): see when u sell
kailash Chaturvedi (7/30/2011 1:50:39 PM): what happens
kailash Chaturvedi (7/30/2011 1:50:49 PM): amount come to u
kailash Chaturvedi (7/30/2011 1:51:04 PM): when u will buy
kailash Chaturvedi (7/30/2011 1:51:14 PM): amount debeted
kailash Chaturvedi (7/30/2011 1:51:20 PM): debited
Bossy k (7/30/2011 1:51:25 PM): Ok
kailash Chaturvedi (7/30/2011 1:51:31 PM): sell amount credited
kailash Chaturvedi (7/30/2011 1:51:38 PM): simple
Bossy k (7/30/2011 1:51:39 PM): Yes
kailash Chaturvedi (7/30/2011 1:51:52 PM): so u are going to sell 90 pe
kailash Chaturvedi (7/30/2011 1:52:00 PM): @ 2.50
kailash Chaturvedi (7/30/2011 1:52:13 PM): so u will get 10 k na
Bossy k (7/30/2011 1:52:19 PM): Yesss
kailash Chaturvedi (7/30/2011 1:52:51 PM): so i m saying we are shorting idea at 94
Bossy k (7/30/2011 1:52:58 PM): Ok
kailash Chaturvedi (7/30/2011 1:53:03 PM): and its 90 put too
Bossy k (7/30/2011 1:53:07 PM): Ok
Bossy k (7/30/2011 1:53:12 PM): I know now
kailash Chaturvedi (7/30/2011 1:53:14 PM): thats all
kailash Chaturvedi (7/30/2011 1:53:27 PM): now further
Bossy k (7/30/2011 1:53:44 PM): But the margin required is that of futures margin for that scrip
kailash Chaturvedi (7/30/2011 1:53:45 PM): if idea will expire at or above 90
kailash Chaturvedi (7/30/2011 1:53:55 PM): yes
kailash Chaturvedi (7/30/2011 1:54:14 PM): but if by paying 50 k
kailash Chaturvedi (7/30/2011 1:54:26 PM): chances to earn 10 k
kailash Chaturvedi (7/30/2011 1:54:29 PM): are there
Bossy k (7/30/2011 1:54:39 PM): So double margin: one for shorting the future & another for selling PE
kailash Chaturvedi (7/30/2011 1:54:50 PM): why to think other way
Bossy k (7/30/2011 1:55:07 PM): Yes?
kailash Chaturvedi (7/30/2011 1:55:23 PM): we are selling future for un secure gains
Bossy k (7/30/2011 1:55:36 PM): Right
kailash Chaturvedi (7/30/2011 1:55:49 PM): but selling options for secured gains
Bossy k (7/30/2011 1:56:01 PM): Okk
kailash Chaturvedi (7/30/2011 1:56:25 PM): if idea will settle at 90.05 on expiry day 10 k will be urs
kailash Chaturvedi (7/30/2011 1:56:48 PM): plus 4 x4k on future too
Bossy k (7/30/2011 1:57:02 PM): If it settles at 96?
kailash Chaturvedi (7/30/2011 1:57:16 PM): then 2k will be gain
kailash Chaturvedi (7/30/2011 1:57:28 PM): and we will rollover
kailash Chaturvedi (7/30/2011 1:57:51 PM): coz we are having 2,50 na
Bossy k (7/30/2011 1:58:00 PM): How 2K will be gain?
kailash Chaturvedi (7/30/2011 1:58:34 PM): see we are planning to sell pe 90 at 2.50 and idea at 94
kailash Chaturvedi (7/30/2011 1:59:02 PM): so on expiry loss i idea 2 rs
Bossy k (7/30/2011 1:59:02 PM): Ok
kailash Chaturvedi (7/30/2011 1:59:12 PM): and gain in pe 2.50
Bossy k (7/30/2011 1:59:16 PM): Ok
Bossy k (7/30/2011 1:59:22 PM): Ok
kailash Chaturvedi (7/30/2011 1:59:27 PM): so 4k x0.50
kailash Chaturvedi (7/30/2011 1:59:29 PM): 2k
kailash Chaturvedi (7/30/2011 1:59:42 PM): we will rollover posn
Bossy k (7/30/2011 1:59:54 PM): Ok
kailash Chaturvedi (7/30/2011 2:00:02 PM): in futures and will make new option sale
Bossy k (7/30/2011 2:00:07 PM): For roll over, what is the cost?
kailash Chaturvedi (7/30/2011 2:00:29 PM): see if current is 48k
kailash Chaturvedi (7/30/2011 2:00:41 PM): rollover will be at 49 k
Bossy k (7/30/2011 2:01:13 PM): How ?
kailash Chaturvedi (7/30/2011 2:01:41 PM): see futures we trade at margin'
Bossy k (7/30/2011 2:01:49 PM): Yess
kailash Chaturvedi (7/30/2011 2:02:07 PM): nifty is at 5400 in 22k
kailash Chaturvedi (7/30/2011 2:02:31 PM): then at 5800 will be at 22.5 k max
Bossy k (7/30/2011 2:02:42 PM): Okk
Bossy k (7/30/2011 2:02:57 PM): Will there be addl brokerage?
kailash Chaturvedi (7/30/2011 2:02:59 PM): where as 400 nifty points equals 20k
kailash Chaturvedi (7/30/2011 2:03:38 PM): in between there will be many chances of book gains
kailash Chaturvedi (7/30/2011 2:04:02 PM): suppose idea fell to 85
kailash Chaturvedi (7/30/2011 2:04:36 PM): ur gain will be 24 k approx
Bossy k (7/30/2011 2:05:08 PM): Okk
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