Muthoot Finance Options update

Date: 30-09-2022

Sold MUTHOOTFIN OCT 800 PE lot 375 at ₹5 for a premium of ₹1875.

The margin required ₹51792.88 it will be a cash-secured put.

Reasons for selling:

The previous close was ₹1033

The strike price is 105 which is 23% lower and there are 27 days for expiry. Sold because the strike price is 23% below market price and even if it gets allocated I will try to do a wheel strategy.

Max loss is ₹3,00,000 if the company goes bankrupt.

Date: 27-10-2022

The option expired worthless, the price closed at ₹1041 and went as low as ₹1007.45 in between and made ₹1875. Was looking for a similar deal this month but could find any have to check the options chart.

Tech Mahindra Options update

Date: 30-09-2022

Sold TECHM OCT 800 PE at ₹2.35 for a premium of ₹1410.

Margin required ₹57,770.39.

Reasons for selling:

The previous close was ₹1,007

The strike price is ₹800 which is 20% lower and there are 27 days for expiry. Last time I made a profit of 100% in this stock, and even if it gets allocated I will try to do a wheel strategy.

Max loss is ₹4,80,000 if the company goes bankrupt.

Date: 27-10-2022

The option expired worthless, the price closed at ₹1075 and went as low as ₹984 in between and made ₹1410. Was looking for a similar deal this month but could find any have to check the options chart.

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.