Monday, 26 September 2022

NMDC Options

Date: 26-09-2022

Sold NMDC SEP 105 PE at ₹.10 for a premium of ₹335.

Margin required ₹57,394 but added ₹60,000 to the brokerage account.

Reasons for selling:

The previous close was ₹127.9

The strike price is 105 which is 17.9% lower and there are 4 days for expiry. The company yield is more than 10%, and even if it gets allocated I will try to do a wheel strategy with options.

Max loss is ₹3,51,750 if the company goes bankrupt.

Date: 30-09-2022

The option expired worthless and I made ₹311.2 after ₹23.8 brokerages.

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