For this week of the 27 august 2020 weekly expiry when the Bank nifty was trading at the value of the 22400, I sold the call option at the premium of the 40rs per share for the lot of 25 of 23300 strike price, that means I received the 1000rs as premium.
What is the current scenario of this position
Yesterday, that is on 26 Aug the banknifty crossed the 23300 and hence the value of the premium too increased. At some point in the day it came near to the 23200 where I squared off the position when the premium price were around 137 rs resulting in the loss of around 2500rs approximately.
Was it a covered call?
At the starting I made the plan to sell the covered call, But as it crossed the 22300 and the trend seemed to be strong bullish I squared off my call position and I am still holding the banknifty ETF. Now this ETF will be used to sell the covered call for the higher strike price.
What is the total loss.
As my profit from holding my portfolio of the banknifty etf is increasing but the loss from the call of 23300 was around 2500rs , I squared it of at that price.Overall I am in profit but as I have not planned to square off my portfolio I can say this week I am in a loss of 2500Rs.
What are the other positions I have opened.
I have opened the new positions of selling the calls at 24500 , 25000 and 26000. I will be posting about these in details in my upcoming posts. I am in loss on each of them as the banknifty is rising and these positions are of the monthly expiry for the September series.
Lets see how they perform.
Am I going to manage the loss that occurred?
I am not going to run for the loss I occurred as it could give me more losses. I am happy as per my strategy. My portfolio is increasing as per the strategy I choose and I will continue following it.
There will be times where I will be booking the losses and there will be times when I will be utilizing my profits to further buy the ETF's.
I will keep my target in my mind and will work to achieve it.
What is my target
My target is to make my portfolio which is currently at 3,80,000Rs to 6,00,000Rs from the banknifty itself . Then I will move to the stocks options.
Conclusion:
This week expiry ended with the loss but I am still holding my complete portfolio of the sbi nifty bank and will use that for further selling the covered calls.
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