Wealth Creation with Covered Call Options Trading and Risk Management
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- čas přidán 27. 06. 2024
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In this video, Mr. Vineet Jainn will teach us the power of the covered call strategy for wealth creation and long-term financial success. Learn about risk management, diversification, and asset allocation in this insightful discussion on smart investment strategies. Watch the complete video to unlock your path to financial prosperity with the covered call strategy.
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0:00:00 - Introduction
0:02:47 - The Power of Compounding
0:45:19 - Decoding Covered Call Strategy
1:16:34 - Conclusion
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The best thing about Mr. Vivek Bajaj in these videos are the questions he asks, like a novice. Despite having so much knowledge in the areas of markets and investment he doesn't express them so that anyone who watches these videos understands them in depth. Wonderful!!! Thank you :)
Great concept of the HNIs and fund houses now made available for the common man, kudos to you sirji.......... a common man's salute
Vivek sir you doing great work because of you common people know in-depth knowledge of investment and earnings from traditional way to more scientific,
Wonderful session. He validated for me everything that I have been doing since last few months.
Vineet Jain Sir thanks for sharing great wisdom & special thanks to Vivek Sir & team for making this happen
Looks good, but in actual market things go differently ..
You have to give delivery of shares if your share value goes above your call strike price(this is what covered call means). In bull run this always happens (example market conditions after March 2023). So at the end you almost have no investment left in bull run. Then you start selling puts and when market goes in bearish mode you have to take deliveries, which you will have to hold till bottom is created, & wait for your price to comeback, till then you have to sit tight without selling any calls..😅..(and only looking at your loss till bull bhai returns )..😂
Some what Solution to this you have to divide your folio into 2 parts, 1. long term investment (so you remain invested in market) and 2. For cover calls.
But, this is very capital intensive. Not everyone can afford.
Thanks Vivek and Vinit jain for valuable explanation on cover call
Thanks a lot. The concepts are very well explained. I am a full time trader and I will start using this system immediately. I got a direction.
Amazing....One of the best videos of Face2Face
The one good thing about you sir, you don't echo in between when a guest is expressing and explaining, I mean you don't interrupt and repeat his words, this makes the listeners and viewers focus and learn. Good host you are sir. Continue doing it. 👍🏻
Great great sir wonderful learning thanks both of you and team
Special Thank Vivek sir your short video for guidance when nifty at life time high recently
You guide us thoda wait karlo
Crude oil, us bonds , mid cap small cap many things you explained
And after 2-3 days market down
Your great teacher sir
Very useful and informative. 👏🏻👏🏻👏🏻
This is the thing I m using already but learnt something new to enhance my doing. Thanks a lot vivekji
Thank you so much both of you 🙏🙏
One of the greatest session Sir. Thank you very much sharing these details.
Its only shown the rosy picture but the reality is far far away
Very informative video. Thanks for this. One more thing we can add to this return is extra 2-5% of dividend.
Nice video... I am aleady doing this strategy apart from option writing. But this video approved my strategy and motivate me to do this consitently for long term. Thank you.
Thanks you Bajaj sir for bringing one more insightful session on wealth creation.thank you Jain saab for sharing your insights and knowledge 🎉👏🏻👏🏻👏🏻
thank you for the kind words
HEARTIEST GRATITUDE FOR YOUR KINDNESS TOWARDS SHARING VALUABLE INFORMATION
Guruji ji pranam 🙏🙏🙏 thanks for your wishes valuable information analysis for us free of cost 🙏🙏🙏🙏🙏 God bless you always 🙏🙏🙏🙏🙏🙏🙏🙏🙏
Great video, very informative from a great person Vineet jain
One of the best presentation I have watched. Thank you Vivek and Vineet.
thank you for the kind words. Vivek is a great host with lot of insightful questions.
Absolutely marvellous strategy, thanks a million for sharing with us
One of the best conversation i have come across and the topic is highly appreciated.. Creating wealth by covered call is really amazing and Vineet Jain ji has given awsome information.. Thank you Vivek Sir.. Love your topics always....
thank you sir for your kind comments!
Hello Sir I want to contact you.
Vivek bhai thanks a lot to arranging such face 2 face interviews for new investors. I request and suggest you to open a fund on same strategies where a small investors upto 5 lakks can invest in such schemes.
सभी को दीपावली की अग्रिम हार्दिक शुभकामनाएं।
शुभ धनतेरस।
हमेशा की तरह अच्छा ज्ञानवर्धक वक्त गुजरा। विनीत जी का व्याख्यान आकर्षक रहा।🎉🎉❤
Thanks Vivek Ji & Vineet Sir
Great to see you and very happy
This is trimendous learning class
We are glad it helped. Do Like, Share & Subscribe for more such content.
Usefull to all investers .
Thankful to Bajaj ji
It was a great Learning Sir, Thank You Vivek Sir
Wonderful. Thanks
Nice one.
I used to do it on regular basis.
This is right concept, I am 6 months to same strategy.
looking forward to great learning
Best Video so far in F2F.
Thank you for a great session!
great knowledge gained......
thanks for the contribution
Excellent podcast very helpful sir
mesmerizing video. amazing knowledge bank
Super video. Thanks
Very very good session... I think one of the best overall view of share market
Covered call is best strategy with Minimum risk. Going to deploy this in NiftyBees. As I am doing analysis of this strategy for last 8 months. Thank you Vivekji for valuable session.
could u pls share ur analysis.
thanks a lot...
Thanks vivekji for this wonderful face2face.
❤❤❤❤❤
The session is very good from psychology point of view. But in terms of learning the value is pretty less. This was like invitation for mf subscription.
There are many unique strategies in market and you are not the first doing this.
The strategy is similar to dr.ranjeet mohanty ka the wheel strategy, featured of f2f earlier, where he has advised to remain quite if your stock value goes down too deep. And again sell call when it comes to cost. He also call it cash secured put selling.
There is another youtuber manoj kumar jain , MKJ, who is doing this kind of stuff sinse last 3-4 years teaching fund management with ROI management.
The question here is why jainn saab has given half hearted knowledge, he missed it by mistake but why other learnrrs on the desk also did not ask that how he will manage the position if the price of the underlying goes down too much. Here which call option will be sold in second month? Or he will wait for price to arrive at cost?
I am also practicing option selling from last 1 year but a little differently generating same amount of return by mixing different strategies learnt from f2f !!
rightly identified @starmaili, if the price of the underlying goes down too much, it is a drag on the portfolio. We at fund level always try to be adept in following the technical indicators, but still cannot prevent the M2M losses from a sudden drop in the stock price.
As you have rightly indicated, this is the biggest challenge on the covered call portfolio.
The way we have been able to reduce these kind of losses
1. is by diversifying the portfolio to more than 50 stocks.
2. is to make that the stock we invest in has strong fundamentals
3. we invest in a staggered manner in a stock and rarely do we go fully invested in the stock in one instance
@@vineet1973 thanks for the clarification Jainn Saab🙏this means this strategy is not for retailers or hni's without technical knowledge.
Retailers with decent fund size can succeed with CASH COVERED NAKED PUT SELLING, where roll over is possible at every point of time. I hope you will work on this and bring for retailers with fund size minimum 10 lakhs.
With a fund of 1 CR if we sell puts 30-35 days time left, 15 lots with earning around 10k each, investment in margin around 30 lakhs and rest reserved, we can make 1.5 % per month guaranteed on total capital involved (1cr). This calculation being on the conservative side.
Most of us who invest in 2bkh flats worth rs.1cr are happy with 20-25 k rent per month. I want you to reach investors with this calculation which will really help many.
I hope you are not offended by my comments and will take my warm regards 🙏
@@vineet1973sir, when your call sold becomes ITM and as you mentioned that you don't sell the stock to book profits- do you book the loss in the call and resell another call following month?
Great presentation❤
Very well explained and conceptualised. Thank you @vivekbajaj for bringing this to us. Your content is amazing
Amazing inputs 🎉
When you pledge shares you get 80% or so as margin money. In case you use that 80% margin money brokers charge you interest (eg., Kotak Securities charge 17.99%) so for one crore you pay (appx 4900 per day) you have to deduct that amount also from the profit, if any you generate. Your effective return becomes less
your observation is correct.
Amazing presentation
very good & informative.
Vivek ji, mazha agayaa..., u r right.
We need more people like him...
thank you so much for the kind words.
One of the best face 2 face interactions. Vineet ji all the best
thank you🙏
Vivek bajaj ji good job
Very informative talk by Vineet Jainn
Excellent video
Thank you sir
Great Video (as always!). Thanks for selfless knowledge sharing! I do have few queries though: 1. When do you write the call option for any stock, begening of the series or second week or later? 2. Incase it happens that after writing the call the stock falls and the call loses most of its value, then do you move the call down within the month? 3. Lastly you said you use margin from stock pleaging to sell calls, but my understanding is that currently you have to use atleast 50% margin in form of cash or cash equivalents. Please clarify 👃
Even I was not knowing the strategy name. But I am doing same thing for more than 6 months and earning good returns. Only concern is that, it requires lots of money. Many challenages, I face it while doing this which is not discussed here.
Hi, Dividend from the stock holding should also be added in these calculation
Great knowledge sir
Great learning great earning sir Thanks a lot involving fund
What learning?
Kya shika aap?
This is basically a marketing & advertisement video.
100% good Vivek Bajaj ji share bazar me risk hai hi nahi
Mai bhi Black Rock chalata hu😊😊😅😅
Maine bhi Harshad Mehta ko stock operate krna sikhaaya tha , tmhe bhi sikhna h to join kr lo limited seat h
Are ye bache kis baat PE ladai kar rhe.
@@KnottyLawyers operator bana hai mujhe
Are bhai ye kya ho rahaa hain. Garibon ko dedo
That's the Most important point "Timing of Being Invested"
I know this Guy, He is owner of Vira Auto at Ludhiana. I start my carrier in his company.
Very Good video sir,
Vivek sir keep it up 🎉🎉❤❤
pretty much the strategy i follow for myself. Except that i also buy faaar OTM CE at piddly sums to cover inordinate spikes. Also i sell PEs n cover with slightly far otm so i cover my loss in case of excessive drops. Problem is IVs. Most bluechip straddles are giving barely 4% nowadays🙏
Hi
Can you please guide me how you are exactly doing??
@@truthprevails3751 viveks video is self explanatory sir. Put up the money, buy a lot or future, sell slightly otm CE. But first learn the basics. Without learning basics if u do will be harakiri. 🙏
Bahut Sundar sir
Vineet sir
What a voice yu have
Great in one go I watched this video
thank you so much 🙏
What a knowledgeable person
thank you for your kind comments.
Is slide refreshing?
Love you sir ❤️
Intersting person ❤
Good hosting, asked the right questions and very good info shared by the speaker. The only question I had for the speaker is - how do they select the stocks?
the stocks are primarily selected on
1. Should be part of the Futures and Options segment
2. Fundamentally they should not have very high valuations as per the sector, we avoid high PE stocks in FMCG, Engg, Realty, IT sector or have very low position in them
3. Based on the expected and current industry performance the stocks are picked keeping in mind reasonable PEs, divident paying companies, higher growth expected and reasonable market sentiment, or some events or triggers
4. Technicals are used to do chose the right entry into the stock.
5. Investment is done in the selected stock in a staggered manner
(examples of trigger)
If elections are favourable for the current ruling party, the PSU with reasonable Price / Book will do well
If interest rates are reducing, banking and financial have more chances of doing well
Great जॉब done vivek bajaj
Sir, It's nice video for long term investment.
yes this is for long term investment, with added returns due to call option writing
super knowledge
thanks sir
A couple of things. A cash component (pledging debt instruments if not cash with the broker) is required to the extent of 50% of the margin. So it is not only pledging of stocks bought. This strategy needs involvement. An alternate is to hold a basket of stocks and sell NIFTY OTM CE, though this wouldn't map 1:1 between stocks and the NIFTY Index. The return would be less compared to selling stock CE, but definitely less stressful.
that is correct sir. Most funds are globally selling index options only as it is easier and less active management is required.
There are very limited funds globally which are selling options on stocks.
We are one of the very very few funds doing this actively and the only one in India as per our knowledge.
Which brokers allow covered calls on stocks. Zerodha does not
I am last 6 year to play this statargy ❤❤ thank you sir
Playing covered calls?
Can I contact you regarding this matter?
A great man
Brother I am too a small investor.. but last 2 saal se covered call use kar raha hoon, Aisa nehi hei ki small investor use nehi kar sakta..
And yes, we can do it better by adding the put option(to control the implied vol and all)
Equity returns + covered call + DIVIDENDS= define your Career for life ...
There will be margin issues also in the last week if the underline gets in the money, and though we can pledge shares and get margin but cash component is also required. All these will affect returns, but i do understand that this is good strategy and extra returns are generated. Some discretionary measures can even enhance returns.
Very conveniently glossed over by the speaker.
@@dhirajsinha2001this video is completely lacking the risk management which is the most imp part...hahaha
Sir long term se switch kr ke options me aa gaye sir..Starting me lag rha tha aaj kuchh milega for long term then finish on options 😊
Jhakash.....🎉
Guru ji pranaam 🙏🙏🙏
All looks good by hindsight, truth is certain communities hv Ganged up to cause looses to retail investors
Great session,Hats off
Thank you for watching the video. Do Like, Share & Subscribe.
Vivek sir I think you should have asked some tough questions like if the stock tanks and stays at a lower level you cannot make any money with covered call nor equity what you do in that case.
There should have been a talk about downside.
True
If market fall he will add more fund in equity and proportionately you sell call option in selective strike price.
COMPLICATED THEORY NOT SUITABLE FOR COMMON RETAIL TRADERS... BRING SOME DOWN TO EARTH TRADERS WHO HAVE ACHEIVED SUCCESS IN TRADING LIKE PRAFUL KULKARNI, SHRAYAS BANDI ETC.
This isn't as simple as it sounds. The speaker is talking about ( though glossing over the complexity involved) the following things:
1. Picking right stocks from the derivatives universe using technofunda analysis. Else, fall in stock price will more than negate the gains in covered call.
2. If there's a spike in the stock, taking futures position.
3. Selling cash secured puts.
4. Keeping cash in the portfolio to meet cash equivalent margin need.
My suggestion to retail investors is not to blindly implement covered calls.
Thank you for identifying all above points very clearly and correctly. 👌
Adding to Point 2 If there's a spike in the stock, taking futures position > selling in Future's segment rather than cash segment
@@vineet1973 they buy Futures in such cases.
This is basically a advertisement & marketing video. Nothing about CC or its adjustment is covered.
This is an incorrect information... For selling options you have to provide 50% cash collateral as per exchange regulation... Even if you pledge and take LAS then LAS costs are 12-15%
Super🎉🎉❤❤
Vineet jainn saying wrong when we pledg equity for option sell we need 50% margin and 50% cash or cash equivalent correct this thing without removing my comment
you are right. it was an error from our end. Apologise.
What are the adjustments to be made when covered call goes into loss?
Very nice video, how to connect to Mr Vineet jain
Vineet Sir, You are talking about options for one month, I am from Canada. I am investing in funds that are doing daily options which are available on S&P 500,NASDAQ and Russell 2000 indexes. Funds are JEPY, QQQY and IWMY. There are more and more funds coming with there options.
that is right. In India weekly options are available only on the the Bank Nifty and Nifty.