Is selling calls of higher strikes prices a profitable strategy
For example:
the nifty 4750 call was traded at 25-30 rupees. sep 07 expiry…
as nifty gather strengths to say about 4650-4700 range this call can become 50-60 rupees
at that time we can sell it and get the option premium..
our breakeven will be at 4800-4810 … which is very unlikeky levels for nifty closing on the expiry day
this i am telling becaue one of the renowned teachers of Management & Financial Accounting subject of CA final level , told while explaining Derivatives Chapter that most of the time it is option seller who makes the money…
Senoirs Please Analyse…. and suggest
Regards, Prem K Jasrapuriya
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