by
Hope you know there are several company announce results/dividends everyday. Pick only the F&O stocks for the safe trades.
Buy the Stock and sell the options one strike price out of the money. As we could observe the stock after the dividend the stock price reduces as the dividend amount. Also after the dividend date the stock prices moves few days on downside. This is the trick to capture the profit on this.
Benefits:
1. Dividend profit
2. Options selling profit.
Example:
Reliance - 1000 Strike price
Dividend 10 rs then after the ex-date - Reliance price will be 990 rs
After the ex-date - this stock might go down for few days..
If you are buying after the mid of month, then theta will be high, so you can get more profit as it will be near to expiry.
Hope use this trick and enjoy the profit.!!!
Buy the Stock and sell the options one strike price out of the money. As we could observe the stock after the dividend the stock price reduces as the dividend amount. Also after the dividend date the stock prices moves few days on downside. This is the trick to capture the profit on this.
Benefits:
1. Dividend profit
2. Options selling profit.
Example:
Reliance - 1000 Strike price
Dividend 10 rs then after the ex-date - Reliance price will be 990 rs
After the ex-date - this stock might go down for few days..
If you are buying after the mid of month, then theta will be high, so you can get more profit as it will be near to expiry.
Hope use this trick and enjoy the profit.!!!
No comments:
Post a Comment