So,I have invested in NiftyBees through out the last year.Lets just say I have accumulated Niftybees around 500 units.
Now my queston is although I am In profit, recent hammering eroded a large amount of my position.So as a precautionary measure I want to hedge the position and maybe make a monthly income out of it.For this I am looking to sell option.
My choices are
1.selling naked call ( 1 lot) may be 600 points away in next month and wait for time value to go down.Even if nifty climbs up 600 point in a month and i see loss in option I can liquidate my position,if needed.
2.Selling Call spread to minimise the risk....but I am not sure how much away should I position the spread though.But it will minimise the risk quiet a lot.
3.Selling front ratio call spread.I have never attempted it.But can I get out of the position if I am in max profit zone?? I have never attempted it but if I do how and where do i place it....keeping in mind I am holding nifty bees so risk is limited.But I want minimize the risk as far as I can.
I want to hold niftybees as a investment.Keeping in mind please suggest something for me....
Now my queston is although I am In profit, recent hammering eroded a large amount of my position.So as a precautionary measure I want to hedge the position and maybe make a monthly income out of it.For this I am looking to sell option.
My choices are
1.selling naked call ( 1 lot) may be 600 points away in next month and wait for time value to go down.Even if nifty climbs up 600 point in a month and i see loss in option I can liquidate my position,if needed.
2.Selling Call spread to minimise the risk....but I am not sure how much away should I position the spread though.But it will minimise the risk quiet a lot.
3.Selling front ratio call spread.I have never attempted it.But can I get out of the position if I am in max profit zone?? I have never attempted it but if I do how and where do i place it....keeping in mind I am holding nifty bees so risk is limited.But I want minimize the risk as far as I can.
I want to hold niftybees as a investment.Keeping in mind please suggest something for me....