Nifty Bees and Call Options

[rai07]

thanks for posting reply

Sir why i m not buying nifty futures is u have to buy nifty futures at one shot where as u can buy nifty bees in decline manner as the market is at very high level. u r right that margin will be low but on the other side at this point of high market level there is high risk if u buy nifty future at one shot.

Thanks

 

[Capricorn]

With the Rs 270,000.00 u plan to invest in NBEES u can buy 4 lots Nifty futures on declines, sell 4 calls and still have money left over. Cheers..

 

[rai07]

Sir it is easy to say to buy 4 nifty futures and 4 calls the real thing is it needs courage to take this much position i dnt know ur risk appetite but surely this is v risky because if nifty bees falls u can keep it as delivery but in case of nifty futures u cant keep for long time u have to pay mark to market losses margin rollover charges etc and atlast under pressure ur broker will cut ur position and if by chance market crashes god is the only person who can save u.

Thanks

 

[Capricorn]

Sir it is easy to say to buy 4 nifty futures and 4 calls the real thing is it needs courage to take this much position i dnt know ur risk appetite but surely this is v risky because if nifty bees falls u can keep it as delivery but in case of nifty futures u cant keep for long time u have to pay mark to market losses margin rollover charges etc and atlast under pressure ur broker will cut ur position and if by chance market crashes god is the only person who can save u.
Thanks

Not true friend. Haven't u heard of a collar. God has nothing to do with this period:lol:

 

[rai07]

Dear i have heard of collar but it doesn't suggest buying nifty futures at decline in a SIP Manner.

 

[Capricorn]

I suggest u do some serious reading on covered calls, before implementing any trade. All the best.

 

[sandipandas2000]

Call wright is so fine but return limited and only market upside or range bound . which strake rate u sell call u r risk free but after this u r in risk. If u near the strike price then u ll squre off and sell next straike price call.this method u cantinued and profit so fine.u safe put buying.upper stike rate put