SURESH KUMAR 🇮🇳

*** Covered Call strategy against  bees Investment ***

--&gt; Covered call in indices for monthly returns we can expect 12 to 14% returns per year.

--&gt; This is for who are not active in trading and having sufficient capital and expecting fixed returns from markets.

--&gt; If market trading hours extended to 11.55 PM will planning to do this strategy because i am more than happy for 2% returns per month returns without watching markets in whole month . 

--&gt; Mostly i prefer peace in my life rather than return on capital.

--&gt; This is for who are having sufficient bees quantity in investment and expecting fixed returns from markets.

--&gt; Will explain for bank bees you can calculate for nifty bees

Niftybees = Nifty
Bankbees = Bank Nifty

--&gt; Price of the etfs are slightly higher than than the spot prices because they include dividend pay out of the stocks.

--&gt; These etfs are managed by Nippon asset management.

Bank nifty spot closing price on March 6th =  41350

Bank bees closing price = 417.84

Bank nifty 1 lot = 25

So multiply lot size * Spot price = 25*41350 = 1033750

bank bees quantity =1033750 /417.84 = 2469.77 ==&gt; 2474.033 

So you should buy 2475 quantities of bees.

you can do monthly options for better returns in long run.

April month 42000 ce trading @700 rs. 

You can sell this 42000 call and If it go to zero you will get 17500 rs profit in month.

After buy bees and sold 42000 call deploy put butterfly insurance for Bees investment.

Because Here from call you will get only 17.5k profit if market fall 3000 to 4000 points you will loss more than this profit in bees so to get insurance you should deploy put butterfly/Put Debt spread.

Now will explain how we can get monthly returns from our process.

Till now we have 2475 bees investment at 41350 spot .

You should Pledge this total investment .

42000 Call sold at 700 rs

Put butterfly for insurance.

Case 1:- 

If you sell 42000 ce at 700 rs . 

If market close between 41300 and 42000.

From 42000 ce in apr series you will get 700*25 = 17500 rs profit .

No loss from Bees .

Pledge bees you can sell far options and collect 4k in month . 4k is insurance we paid for butterfly.

Case 2 :-

If market close near 42700 .

42700-41300=1400(so 14 rs in bees profit )

14*2475= 34650

Bees we have profit (34k) and book that profit .

From 42000 Call we collected 700 points so no loss from that.

Net : 34k profit

Case 3 :-

If market close 43000.

Every 100 points bank nifty move will get 1 rs profit in bees .

so 17000 points moved so 17 rs profit in bees.

2475*17= 42k profit from bees so book that profit.

42000 ce we have 300 points loss . 

300*25=7500 loss

Net:- 34.5k profit.

Case 4:-

If market fell 1500 points.

We have 17.5k profit from call sell and almost 25k profit from Put butterfly .

Now loss in bees neglect just repeat this for next month.

Take that profit and invest again in bees increase bees quantity at best avg price.

I have tested this for 4 months all months went well .

Here condition is that 10L investment in bees should hold for long term and repeat.

Every month you can easily generate 2 to 3%.

If market falling continuously then with pledged bees you can sell weekly calls also.

Here you can see results of Nov and Dec months which i have tested in live market with excel data.

Happy Learning and Keep growing 😍😍✌️✌️

500 to 700 bro that should be round number strike because of liquidity issue.