I have sold Nifty 16900 PE for 1.2 on the expiry day because I want to know how settlement works.
I have used ₹96000 from the emergency fund and this will be settled today.
Made ₹60 from premium and ₹23.64 is charged as brokerage. Settled cash is ₹36.36 and XIRR is 14.34%.
I am checking what is the maximum drawdown for my stock portfolio and with rough calculation, I found on Jan 17th, 2022 (Value is 17263.12) and Feb 24th, 2022 (value is 14265.14). The Maximum Drawdown is about -17.4%.
March 11:
MGL Option
₹58450 is used from the emergency fund
Margin required ₹62,193.17, extra cash used ₹3,743.17
To take delivery, I need 600*650 = ₹3,90,000
Expiry Mar 31 st 15 days till expiry
I have placed an order to sell at 3.4, later canceled due to margin requirement, and will plan to execute a trade when I have full cash to cover.
March 17:
MGL Option
₹50,625.95 is used from the emergency fund
Margin required ₹59522.38, extra cash used ₹18.03 plus ₹8,878.40 from broker account.
Sold MGL Mar 650 PE for ₹1.25 Lot 600 Credited: ₹750 Premium
I will get the stock assigned if it expires in the money.
To take delivery, I need 600*₹650 = ₹3,90,000
I will come up with that money when my salary gets credited.
Added ₹175+1182 for margin. The total money used by end of the day was ₹60,879.38.
02-04-2022:
The put expired worthless and I made ₹725.93 after brokerage ₹24.07. Options are good but it needs a large capital.
Draft Stock options rules.
1. The options should be cash-secured puts or covered calls.
2. It should satisfy earnings rule 3 with a dividend yield of 1% and I should be happy to hold for a long time.
3. The monthly biggest drop should be calculated and put sell should be placed based on the biggest drops in a month.
4. One lot per stock/index only.
MGL
1. Monthly biggest drop is 18.59%
Reasons for buying:
Buy PE was reasonable at 19.99 and above 10 years PE median of 15.44.
The 5-year earnings average is 37.23% and earnings increasing since 2012 except in 2018 and 2020.
Return on equity is good at 44.76% but the 5-year average is 25.33%.
The market cap of the company is ₹1,179.97 Cr.
The debt of the company is ₹16.45 Cr with ₹33.85 Cr in cash.
Buy date: 16-Mar-2022
Qty: 5 Buy Price: ₹1900 Buy EPS: 95.01 Buy PE: 19.99
I will stop buying when EPS drops from the current EPS but will add 10k if the price drops to ₹1710 and EPS remains the same.
NGL Fine-Chem is an Indian company engaged in the pharmaceutical business. The company is a manufacturer of pharmaceuticals and intermediates for usage in veterinary and human health. Its product includes Active Pharmaceutical Ingredients (APIs) animal health, APIs human health, Intermediates, and Finished dosage form, of which maximum revenue is generated from Veterinary APIs. The company sells its products in India and also exports it to international countries, of which key revenue is derived from export sales.
Reasons for buying:
Buy PE was reasonable at 19.99 and below 10 years PE median of 32.63.
The 5-year earnings average is 35.02% and earnings increasing since 2015.
Return on equity is good at 36.18% but the 5-year average is 29.17%.
The market cap of the company is ₹7,283.36 Cr.
The debt of the company is ₹126.10 Cr with ₹261.43 Cr in cash.
Buy date: 16-Mar-2022
Qty: 4 Buy Price: ₹2422 Buy EPS: 121.11 Buy PE: 19.99
I will stop buying when EPS drops from the current EPS but will add 10k if the price drops to ₹2179 and EPS remains the same.
Lux Industries is an Indian company that is engaged in the manufacturing and sales of knitwear for men, women, and children. The company's products include briefs, trunks, drawers, vests, Bermudas, t-shirts, socks, leggings, bloomers, panties, slacks and slips, and winter wear. It markets its products under the brand name of Lux Cozi, Lux Cozi Bigshot, Lux Venus, Lux Classic, Lux Inferno, Lux Cottswool, and others. Geographically, it derives a majority of revenue from India.
Expenses:
I have spent ₹41,594 in February, the top 5 expenses are travel (₹10,844), Medical (₹6,743), Groceries (₹5,560), Maintenance (₹4,499), and Internet (₹4,435). Travel, when planned in hurry, will cost more. I have to plan my travel carefully.
Portfolio:
