Optionalysis: Demystifying The Covered Call


After a while we’re back to Optionalysis. The last week was extremely volatile to trade, given the RBI and Fed actions, and the fact that I would only be able to send the letter with a large lag, which gives too little a time to be able to act. So there have been no positions.

The Covered Call

The rest of this content is only available to premium members.

Already a subscriber? Log in now!

Register for a premium membership today! Apart from this content you will get our proprietary research and weekly newsletter too!

Get Your Capital Mind Premium Subscription

Related Posts Plugin for WordPress, Blogger...


  1. Dear Sir,
    If we sell put and the stock goes down, then there will be loss in both ways – loss due to decreased stock price & loss due to increased price of written put. How this is managed ?
    Dr.Suhas Kothavale

  2. Dear Sir,
    One more thing I wanted to mention about ETFs. If we buy Niftybees or Bankbees equivalent to one lot of the respective index, i.e. 500 Niftybees or 250 bankbees ( actually I am having 250 Bankbees @ Rs.945) and we want to sell the call option in this condition then Niftybees + ?% and Bankbees + ?% strategy will work.
    Please let me know figures at two ? marks in above examples.
    Dr.Suhas Kothavale

    • This will have to be tested further; I don’t know an easy way to back test other than getting the data and plotting it. Nifty and Banknifty tend to get very little premium on written options, so I would be quite careful about trying the strategy with them. Once in a while it makes sense of course.

Comments are closed.