Hi,
i came across this startegy on the net about being long in the stock and writting calls against the same also popularly known as covered calls. so i was just thinking about buying a nifty future and writing an option on the same at the nearest out of the money and further roll it up or roll it down depending on the market movement. what i would like to know is whether this strategy is profitable in the long run (probably in a year's time) also i came to know that this strategy is helpful when the markets are neutral and slightly bullish and also offers a limited downside protection. i would like to know from the senior members in the forum thier comments and suggestions. i am also back testing this strategy with the historical data on Nifty futures and options from nse website.
Thanks and Regards
Sundar C
i came across this startegy on the net about being long in the stock and writting calls against the same also popularly known as covered calls. so i was just thinking about buying a nifty future and writing an option on the same at the nearest out of the money and further roll it up or roll it down depending on the market movement. what i would like to know is whether this strategy is profitable in the long run (probably in a year's time) also i came to know that this strategy is helpful when the markets are neutral and slightly bullish and also offers a limited downside protection. i would like to know from the senior members in the forum thier comments and suggestions. i am also back testing this strategy with the historical data on Nifty futures and options from nse website.
Thanks and Regards
Sundar C