Comment on SPAN Calculator
commented on
08 Aug 2013, 07:49 AM
Hi Zerodha,
It is great initiative to have a blog and make it accessible to all. It is so useful.
I wanted to write/sell a covered call(or may be hedging) as below:
SELL (1 lot)a stock call option(CE) ABC @strick price 100 for the premium Rs.4. May be the underlaying stock is trading @95 at that time.
As there is a risk involved if the stock price of ABC goes up beyond 100 I buy-CNC-(1 lot) the shares of ABC @95. Now even if the option premium increases there is no problem as I my stock price increasing can offset that.
Now my questions are:
I wanted to sell the stock option and buy the lot of shares in a single trade as: (SELL ABC CE 100 at >= 4) and (BUY 1 lot ABC-EQ at <= 95).
1.