Get Stocks Free in 4 Years!!! – Big Boy Covered Call Strategy
This session explains about new strategy Big Boy Covered Call
1) What is Big boy covered call?
Buy quality large cap stocks for long term
Good to choose at least 4 stocks
Recommended to buy more 7 stocks
Best to choose from top 10 heavy weight stocks
Do covered call for the holdings to get rental
Earning minimum of 12% per year
Without disturbing investment return
It doesn’t matter how market moves
2) When to enter & exit?
Enter 5 weeks before expiry
To get nice premium
To get right liquidity
Exit one week before expiry
To get rid of GAMMA effect
To escape from high margin collection
3) How much margin? Where to get?
Let us say that you invested 30L into market
You are holding 5 stocks
Pledge shares and get collateral (30L – 5L = 25L)
1/3 of total collateral is enough for this strategy
10L is more than enough for covered call
For both selling and adjustments
I personally use only 25L for my portfolio size of 1 Cr
Remaining 15L can be used for other option strategies
Short strangle, Short Straddle, Chicken Iron Condor, etc.
4) What strike Price to sell CE?
Premium = 1.25% of cash price (spot)
SL1 – Premium Triples
SL2 – Option goes to ITM
SL3 – Gap Up
6) How to Martingale (examples)
7) Key Points in Adjustments
Never allow your options to go ITM
Can sell PE
If you do not want to do double the volume
But should be able to take delivery if market comes down
Refer INFY, RIL and HUL adjustment Videos
While doing martingale,
Do it in next month if premium isn’t less in current month
Never do more than two times martingale
Since you hold underlying, selling CE is risk free.
Phycological advantage of holding if sold CE comes to ATM
Selling CEs in many stocks will diversify your risk,
Most Stock Options will give profit
Only few stocks will hit your strike price
Total immunity from black swan event
Can invest and get rental if stocks don’t move
Easily can target 12% per Anum
Tax and roll over charge benefits
Premium Sold = 1.25% of spot (5 weeks before)
Premium left = 0.25% of spot (Rough premium 1 week before)
Net Premium (Profit) = 1% of Spot. Total = 1% of invested value
10) Stock is free in 4 years
Sell CE in Nifty and get more rental income
Sell it in far month or long term in Dec month
May reserve 50% collateral = (Stock + Index) Options
Get 6% per year through Nifty CE Selling
Adjustments are same as what you did in Stocks
Rental income from (Stock + Nifty) Options = Total Rent
12% from Stocks + 6% from Nifty = 18% per Year
By rule of 72, your capital will be doubled in 72/18 = 4 years
Stock is free after 4 years of time
Most brokers are asking for 50% cash component
There are some brokers who allow 100% collateral.
Contact +919962143422 via Call/WhatsApp/Telegram for more information. Email your queries to email@example.com
I am not holding the stocks equal to derivative contact
Better not to do in stocks
Do with Nifty
I am holding large cap MF. Can I do this strategy?
Yes you can
12) Why I love this strategy?
Regular Rental Income
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Jegathesan Durairaj, a mathematician by qualification, an Ex-software professional and now a full time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity in twitter as itjegan, with huge followers. He had won Zerodha 60 Day Challenge – 10 Times round-the-clock. He is one of the prime Option Writing Trainer and tutored close to 1000 members till now.
He is the Mastermind of CapitalZone – Active Option Trading where Traders can avail Trading Chart with customised indicators, FNO tools and Payoff analysis. His keynote is to provide whole FNO deets to be handy for Traders in a sole place.
Now he is taking more heed on hedging portfolio in Option Writing where we might subject to more market risk. He is streamlining his strategies often and improving perpetually. At this time unfolding ways to measure good-quality Trend Following System.
Conducting workshop in all Metro Cities (Delhi, Mumbai, Bangalore, Chennai and Coimbatore) often based on queries from Traders.