One of the most potent tools in the inventory of option traders are free Calls. How do we get them ? Quite simple in fact. Please note the following example (reference Reliance, any strike level, lot size 150) :
Premium Lots Price Action
40 50 3,00,000 Buy
50 40 3,00,000 Sell
So, the above transaction earns you as many as TEN FREE lots of Reliance Calls in just one day ! If you get an opportunity, you can repeat the operative the same day again. Repeating the process just FIVE times will get you as many as 50 FREE lots. You can sure have many more, depending upon how many times you repeat the operative. We suggest you begin small and increase the stakes gradually as you gain more experience & confidence.
Each and every penny earned on these FREE lots will be your profit.
20 x 150 x 50 = 1,50,000 rupees(selling at a reasonable 20 premium) 50% return10 x 150 x 50 = 0,75,000 rupees(selling at a mere 10 premium) 25% return05 x 150 x 50 = 0,37,500 rupees(selling at a rock-bottom 05 premiun) 12.5% return
All the percentage returns shown above are merely single-transaction returns. One can easily repeat the process over and over again, at least on certain definitely bullish days.
Good assured (almost) monthly income ??Unleashing the power of OPTIONS as we said !!
50% monthly return, 600% annualised !!! Any takers ???
No other trade operative makes this even remotely possible !
The beauty of these free calls is that you’ll never be in a hurry to square them off, so you can easily wait for your expected premium value. Even if some of these calls expire worthless, you don’t lose a penny as the calls were already free to you !
Please note that to be on the conservative side, we have suggested selling the initial 40 lots only at a premium of 10 (easily attainable for Reliance). You can always sell these at higher premium, thus earning yourself proportionately higher number of FREE Call lots. If you can’t sell off these initial 40 the same day, you can always wait for a day or two. Do make the usual allowance for brokerage payment please.
CAUTION : If you propose to buy/sell as many as 50 to 100 lots in a day, first please assure from the NSE web site (or through your own trading software) that there is sufficient volume available in the strike level of your choice. Even if you need to transact a costly Call, it really doesn’t matter much (beyond the higher initial investment), as you will get your entire investment back the moment you sell off the stipulated no. of Calls.