Poor Man's Covered Call Strategy - High Probability High Profit Strategy

[@CapitalZone]

DESCRIPTION Mr. Jegathesan Durairaj (itjegan) is a professional Option trader, strategist, Expiry trader, Trainer, and Investor. He is a mathematician by qualification, an Ex-software professional, and now a full-time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity on Twitter as IT Jegan, with huge followers. He has won 12 times on the Zerodha platform. He founded his own firm CapitalZone in the year 2018. For Live Trades & Market, analysis Join my Telegram channel for Free Search ITJegan in the Telegram app & follow @ITJegan on Twitter t.me/itjegan --------------------------------------------------------------------------------------- Discount Offer for Sensibull & tradetron Subscription, click here. Tradetron subscription link: www.tradetron.tech/?ref=capitalzoney Sensibull Subscription link: pages.razorpay.com/itjegan --------------------------------------------------------------------------------------- To Open a Trading and Demat Account, you can use the below link, ZebueTrade: zebuetrade.com/itjegan/ Zerodha: zerodha.com/open-account?c=ZM... Motilal Oswal: www.motilaloswal.com/open-dem... Alice Blue: abopening.online/CAPITALZONE/ ---------------------------------------------------------------------------------------- Subscribe to CapitalZone : kzbin.info Subscribe to our தமிழ் Channel CapitalZone: kzbin.info/door/ke6ygIkcouKm7R3nLSyalA ---------------------------------------------------------------------------------------- WORKSHOP DETAILS: Conducting workshops in all Metro Cities (Delhi, Mumbai, Bangalore, Hyderabad, Chennai, Kerala, and Coimbatore) is often based on queries from Traders. 👉Topics: capitalzone.in/topics/ 👉Enroll Here: rzp.io/l/G1rrn8POy 👉Schedules: capitalzone.in/schedules/ ---------------------------------------------------------------------------------------- For Trading Account Opening and Other financial services, can reach us at: Phone\Whatsapp\Telegram: [phone] Free Telegram Channel: t.me/itjegan Twitter: twitter.com/itjegan/ Facebook:facebook.com/capitalzoneitjegan LinkedIn:www.linkedin.com/company/capi... Instagram: instagram.com/capitalzone_itjegan/ Website: www.capitalzone.in/

[@satyajh]

5:53 the last line in the slide should read SELL SEP 11700 CE instead of SELL SEP 11500 CE

[@vaibhavstocks347]

In text book terms, This is called as "Diagonal calendar spread" Thanks for teaching this in simple way !! You are great!

[@nravi9832]

Dear Jagan You are the one person sharing your strategy instead of showing MTM profit to retail investors. Thank you for your sole

[@ravip277]

Nobody, I repeat nobody will explain in detail like you. Hats off to your efforts. Thanks

[@JayankDasNetwork]

lol nobody cares

[@pbose698]

HEY ALL YU GUYS THIS IS THE GUY WHO MADE ME RECOVER APPROXIMATELY 35 LACS THAT TOO IN 3 MONTHS.

[@shirkedance]

Can you tell us about the investment requirement and in which Script did you trade ?

[@pbose698]

@@shirkedance I traded with appropriate One crore plus and did his hedged option s and futures. I recovered a lot on futures.

[@shirkedance]

@@pbose698 thank you for the Information.

[@pbose698]

@@shirkedance welcome in fact in a shooting or crashing market if you get the right direction you make huge profits but all has to be hedge.I did not keep stoploss as it will always trigger keep mental stoploss.

[@shirkedance]

@@pbose698 that sounds Smart. Yes software stoploss never work. I agree with you

[@pramodbonkinpelliwar8514]

What an analysis Sir 👏🙏You are God for people like us . Thank you so much Sir 🙏

[@vijayakishorebabu8822]

Fantastically explained. Thank you jagan. It's my heartful thanks.

[@nermaal70]

Sir poor man St. Is some what similar to long calendar spread. Only with difference of it formed by different strike price. Hope my guess is correct. Thanks for sharing your knowledge.

[@krishnamehtre9146]

The way you speak is so touchable

[@CapitalZone]

DESCRIPTION Mr. Jegathesan Durairaj (itjegan) is a professional Option trader, strategist, Expiry trader, Trainer, and Investor. He is a mathematician by qualification, an Ex-software professional, and now a full-time Risk Defined Option Writer. With his Open Book Strategies, he is the most known identity on twitter as IT Jegan, with huge followers. He has won 12 times on the Zerodha platform. He founded his own firm CapitalZone at the year of 2018. For Live Trades & Market, analysis Join my Telegram channel for Free Search ITJegan in the Telegram app & follow @ITJegan on Twitter t.me/itjegan Discount Offer for Sensibull Subscription, click here. Link: pages.razorpay.com/itjegan To Open a Trading and Demat Account, click the below link, ZebueTrade:zebuetrade.com/itjegan/ Zerodha: zerodha.com/open-account?c=ZMPSLL Motilal E-KYC Acct Opening Link : mosl.co/AkSo6eS2b2 Alice Blue Acct Opening Link : aliceblueindia.in/Capital_Zone Subscribe to our Channel CapitalZone: kzbin.info WORKSHOP DETAILS: Conducting workshops in all Metro Cities (Delhi, Mumbai, Pune, Bangalore, Hyderabad, Chennai, Kolkata, and Coimbatore) often based on queries from Traders. Schedules: www.capitalzone.in/schedules/ Enrollment: www.capitalzone.in/how-to-enroll/ Topics: www.capitalzone.in/topics/#.XEWDxVwzaM8 For Trading Account Opening and Other financial services, can reach us at: Phone\Whatsapp\Telegram: [phone] Free Telegram Channel: t.me/itjegan E-Mail: [e-mail] Website: www.capitalzone.in/ Twitter: twitter.com/itjegan/ Facebook:facebook.com/pages/category/Financial-Service/CapitalZone-105618477801678/ LinkedIn:www.linkedin.com/company/capitalzone-in/ Instagram: instagram.com/capitalzone.in

[@bnhede]

P

[@keepsmile2872]

Poor man's ahh you are billionaire stupid

[@shreesmandalmane1264]

Good

[@umeshnathani7262]

Analysis is good , but it is require Details example with fund will require for Poor man Strategy.

[@kousikharish6836]

Sir pls cover every topics using charts, it is very tough to understand the presentation

[@seshagan229]

What is the difference between calendar spread and poor man covered call plz

[@Singh-yr3ms]

Its a diagonal calendar spread basically

[@manjutyagi762]

Thanks sir, all strategies you tell very good.

[@nandhu63]

superb sir..with every video we are not only enriching our knowledge but also gaining confidence in dealing with options where we have our own mental block created by so called market pundits.

[@ramsridharmahanti4315]

Sir What an excellent hard work you did.

[@upkarsinghsaini8246]

Good sir,i have to watch atleadt for 5 times,to recover. Good explain

[@sudheerp7619]

Thanks for your efforts Jegan sir, what if market goes down? and what are the adjustments for call option we bought? Can you please explain sir!

[@kishorekumar5885]

Yes sir.. good point.. would like to know if there is any adjustment if market is going down

[@arulk9373]

what a lovely hedge for call that's in problem. The surge in Oct call premium was nicely hedged by Nov long call, initiated when Oct call is about to go ATM.

[@rd-tk6js]

Nice, thanks ! Can ATM CE be sold instead of OTM CE ?

[@karriramamurtynaidu1737]

Thank u so much for nice strategy.

[@paulgeorge1672]

One mistake in chart.. you wrongly entered 11500 instead of 11700 in current month expiry.

[@investmentopportunity904]

Sir if possible do in excel Payoff chart also available there so we can understand better

[@krishnaaskr]

Sir, How you got this much huge knowledge, what are your sources of this immense knowledge, can you please make a video on it, a request.

[@vinithsaip8661]

Sir please can you make a video on the currency options trading.

[@silambarasanmohan4749]

Thanks jegan.. very good information..

[@srikartiram]

5:10 you advised to sell 11700 CE but in display it is 11500 CE. I'm assuming we need to sell 11700 CE. Please correct if i'm wrong.

[@manojhegde8390]

yes you are r8

[@prajitvishnukarthik8886]

sir, what abouth the entry and exit for poors man covered call strategy?

[@muralin2259]

Conceptually Good, You missed couple of points-It has time decay advantage but it also has disadvantage of high premium for ITM call buy next month, unlimited loss for bigboy covered call-if market comes down-How it is possible? i do not think so, we should not call it as covered call-I would rather say different type of spread strategy

[@CapitalZone]

We buy itm call

[@muralin2259]

@@CapitalZone i agree to you that it is ITM, its a typo error(edited now), my point is ITM buying for next month has high premium, unlimited loss for covered call pertains to Long future but not Long cash

[@rahuls1150]

i sold 12000CE Oct @132 bought 12400CE Nov@110 22 point credit per lot your views on the same plsss

[@muralin2259]

@@rahuls1150 You will remain profitable but it is important for timely exit considering the above strike prices chosen, instead you can look for bear call spread monthly sell and weekly buy

[@daviddharamraj2088]

very helpful Jegan bro....Thanks..n God Bless...

[@harerama1034]

Nice brother..👏👏 beautifully explained.

[@abmandal15]

Sir, Can this be done weekly - selling current week, buying next week? And, can this be done on Put side as well? or, this will do in call side only? As sometimes, we may finf Nifty trend negative. OR, What will happen if done on both sides?

[@boomaboom6458]

If you want to do same strategy you can also use bear call spread or bull put spread

[@manabsarkar2948]

May God Bless you and your family

[@5123karan]

Very informative. Thanks

[@TradeGraphix]

you can sell put in the covered call when the market is coming down to reduce loss, I think, correct me if I am wrong

[@cutieunicorn7248]

There could be another way; let's say 473 DTE, buy 80 Delta call option and sell option month after month with 30 delta. If the Index or ETF remains same over a year, you will have a breakeven in 365 Days and remaining 4 months premium you are going to collect is your profit. According to me, it's more a high probability trade.

[@charuhasjuvekar7051]

Sir I would like to know about your above delta strategy, if you please.

[@23docchetan]

for spread and covered call, does CTM is also treated as ITM for net off with future???

[@pravinchachad]

Sir if market is going down the can we do a poor mans covered put or this method is not allowed to use with puts ?

[@ravindrap3653]

Hi Sir, Please post some Intraday strategy with a hedge. Thanks.

[@beardvenky617]

Go for long in stock and go for sell in future...same quantity in both cash segment and future segment.. remember the stock is from F and O

[@ravindrap3653]

@@beardvenky617 margin requirements will be more and more over this will be good for positional not for intraday

[@amitsharmapkl]

Thanks sir. Plz tell how settlement will happen if i sold one future and buy one synthetic future( buy ce, sell pe), at expiry for any stock. Is there any kind of physical settlement and at what time it has to be squared off 3.20 or 3.29.

[@magicwellness2897]

Also when to square off ? Current month expiry or shift next month expiry ?

[@MobileGamer20234]

Hi sir, i am like to work related to stock market. How to identity to join

[@CapitalZone]

Check out here, kzbin.info/www/bejne/ZoGZZpigiK-Lf7s

[@MobileGamer20234]

Thankyou sir

[@raghavareddy1930]

If we buy nifty fut how we will get 200 points profit...?

[@chiranjivirao2105]

Jegan Anna in above strategy when is right exist & when we should start doing adjustments.

[@rijojose360]

Sir why did you remove your todays live session from youtube ? I was unable to watch at that time due to network issue.. Please upload it

[@chiranjivirao2105]

Dear Jegan, What should be ideal IV levels & Positional Greeks while entering PMCC of ( 1.ITM call option in a longer-term expiration cycle 2. OTM call option in a near-term expiration cycle)

[@bhalchandrapandey9730]

Should we use this strategy in weekly or monthly because we are earning with the help of OTM selling.

[@sutapas_entertainment]

Next month ITM ce is too expensive. In the middle of present month we can buy that. Not in the beginning.

[@vijayakishorebabu8822]

Fantastic explaining. Thank you very much. I have one doubt. Next month deep itm call we are buying. Current month otm call is selling as per plan. Instead of current month otm call, why can't we sell current week otm call, it's time decay is more fast than current month. My brain says current week premium is very less, which may not sufficient to hedge the holding positions. Am i right. Kindly answer please.

[@CapitalZone]

Yes, correct

[@vijayakishorebabu8822]

@@CapitalZone Thankyou sir.

[@pranabeshmandal2102]

Sir, what you told do not understand. Please explain open with option chain, then it clear to understand.

[@musclemediatamil4797]

Sir fantastic explanation sir thank you so much sir I have subscribed you. Channel i will refer my friend also

[@fmajor5792]

this is calendar spread ??

[@ltnikhilkumar]

Jegan the video is very helpful, thanks a lot. Please guide on how to decide about the quantity of calls to be sold based on portfolio size. If my equity portfolio is worth 20 lakh in nifty bees, how many lots of nifty ce should i be selling.

[@sainikpraveen5293]

9 lakh for one lot

[@atharvthegiant]

Sir down side adjustment??

[@niladrighosh4004]

sir what strike price need to select depends on Iv skew or IV smile or OI buildup what is time frame monthly/weekly for both OTM & ITM when to enter for monthly/weekly expires please guide me sir Thanks

[@avtarsinghh4279]

Good bro . Thanks a lot 😊 Appreciate your efforts

[@manabsarkar2948]

Sir.. Bullish and Bearish...a common covered call strategy provide us please.

[@divyabharathikvkopparapu4872]

Can we do poor man covered call and put? When we don't know the market direction

[@anuragwalia2985]

Can we sell next month Put instead

[@charuhasjuvekar7051]

Sir, Very lucid explanation. Sir one query please. 2. May I know when to exit the market ? Is it the current month's expiry ?

[@prajitvishnukarthik8886]

same doubt i too have, Can you confirm and tell me sir?

[@chennaijeeth]

jagan Sir when i am see the pay off chart it is seen the Breakeven it is very close to the sold CE and hence may require frequent adjustment . how far should be the sold OTM how to select OTM by Delta or Theta

[@omegacreations7030]

In which situation we can do this poor man's covered call strategy sir

[@raghunathan6494]

Neutral to bullish

[@Swastiktiwari]

Thanks Sir, great knowledge

[@pksankariyer1318]

Excellent 👌 analysis

[@ambivert1908]

Thank you Mr Jegan!

[@abhimanyoosingh7027]

Sir please make a strategy for regular income and if possible it would be very helpful that the strategy works in intraday Option hedging

[@kks8673]

it is same as bull call spread with different expirations

[@gunjanaggarwal9704]

Is it not call calendar spread

[@virendranahata4481]

Sir please how much needed for this poor man strategy 🙂😊

[@karunakarg6]

The best video is seen so far

[@b_b5537]

Why should we not use call spread?

[@CapitalZone]

If market reverses, bought call decay will be more

[@manabsarkar2948]

Current month 11700 call sell...but...picture showing September 11500 call

[@nitinkate2357]

Nice Explained...Good One Bro..... Thank You

[@anishgandhi]

Hi Jegan can I do this strategy in the weekly Nifty & Banknifty options?

[@praveendalakoti3174]

Yes

[@human.anytime]

The best part of this strategy is to allow time decay with enough time for adjustment, you have to be prompt if experiment this w=on weekly options

[@hanu.important]

Jagan sir.. thanqs for sharing

[@MrSudeepantony]

Dear Jegan, Highly aprrecciate your efforts. Can you please stick to Poor Man's covered call only. In between you are telling about Bull Call spread, Big Boy. It is bit confusing and please speak bit slowly. You are speaking too fast. Thank you.

[@aneeshkhan5966]

Sir you told that sell OTM in current month but in above example you sold 11500 with current month ATM

[@sudheerkumargoli2440]

Hello sir.... I have a query as a new comer .... you said that illiquid would be in stocks... so its not better to do in stocks.... but as a buyer ... right to execute our trade whenever buyer wants ... it may be iliquide but on expiry if it is ITM trade must be executed if buyer wants ... so on expiry liquidity is not a problem for buyers if we have capital equals to notional value or buying value ... .. but as you said before expiry it would be problem to exit I think..... sorry to ask basic doubts .....if I am wrong correct me sir....

[@nikhil99a]

The problem is there won't be any option seller for next month stock. So from whom you will buy in that case(illiquid)

[@sudheerkumargoli2440]

Nikhil A sir told that he would use this thing to protect his covered call ... if luckily at that time seller exists in stock to protect covered call in stock it won’t be a problem I think.. that means getting a seller might be a problem but after buying there won’t be a problem to exit

[@nikhil99a]

@@sudheerkumargoli2440 it depends on luck but index option is more liquid so always works

[@sudheerkumargoli2440]

Nikhil A ok thanq

[@sudheerkumargoli2440]

Nikhil A one small doubt what would happen if OTM options left opened on expiry... is it compulsory to close ...

[@geethadeviep1700]

Thank you very much

[@rupamnath3961]

What will happen if I buy October expiry nifty 50 12500 CE today or October 5, 2020. If nifty reaches 12500 by end of October month how much I will receive money for that Call.

[@bharathkumar7110]

U won't receive any amount, if nifty crosses 12500 + the premium paid for call option u get the profit

[@rupamnath3961]

Kumar ok. I see. Thank you

[@akshay_bothra]

Would this strategy work for bearish view on nifty ? Buying ITM put next month and selling OTM put for current month ??

[@human.anytime]

i dont think so, the name is itself covered "Call" , not put !

[@akshay_bothra]

@@human.anytime ha..ha...you seem to be novice in options..flexibility and adjustments is the beauty of options trading, name doesn't really matter

[@nishchintkumar2744]

Itm premium high then current month..check it

[@samarthas3727]

Can you show payoff diagram. It will save your time. Also risk is slight more than reward. If underlying moves against our favour, immidiate loss starts. Nowa days Nifty moves average 200 points per day. So these strategy do not work effectively for weekly calendar. For Monthly, however it work pretty fair provide we book 2-3kin 2/3 days

[@purabisircar4197]

what about opposite, tell about put...

[@vikashpbr6842]

It isn't poor man covered call because in selling buy call option margin we have to pay is 5 to 6 times more than buy call

[@padmanabhanr4242]

Slide should be Sell SEP 11700 CE instead of 11500 CE right?

[@manabsarkar2948]

Bank nifty poor covered call settings please

[@mostlysunny4u]

Sir, thank you for the video I have one question. For an call to be OTM, we have to sell above 11500 if the spot is at 11500 right? In the example given by you jn description, it says spot is at 11500, sell OTM 11500, it shoud have been 11600 or 11700 right? Please correct me if wrong anywhere

[@kskrishnaswamy7202]

@1.43 you said 200 pft in futures and 200 in call. If nifty moves to 11700, we get 200 pft in futures. But since we have sold CE 11700 @ 200, we have to buy it back at higher price wen nifty touches 11700. How come then pft is 200 in Call. Kindly explain

[@Andrew-fb4vn]

It comes down to the difference in delta.

[@CapitalZone]

We have ITM buy in next month, hence it will be taken care

[@durgacharanrath9498]

Thank You Sir♥♥

[@magicwellness2897]

You had written to sell atm 11500 ce but you said to SEL OTm 11700 call !?

[@arunkartheic3899]

Thank you 🙏🙏🙏

[@subhrajitdey5513]

Don't we see Greeks and Im. But confused.and when to enter

[@subhrajitdey5513]

@@IndianNewbieTrader ok

[@reelertheboss]

Very nice sir.

[@mokshranka]

Thanks a lot

[@sanjeevbeniwal3313]

Thanx Jegan

[@manojp434]

How much margin required for this strategy?

[@manabsarkar2948]

55000

[@aneeshkhan5966]

Please make me clear any this