Friends, This person is lucky to hold 10000 shares of ITC, which at CMP is worth about 420X 10000= 42,00,000/- about RS.42 lac.
Instead of wondering whether to sell it or not, I will suggest you sell 6 ( SIX) ITC covered calls at a strike price of say 420 rupees per share ( ATM) for which you get A MINIMUM premium of RS.10/12 rupees per share approx.
You will get about 1600/- X 10= 16000/-( rupees sixteen thousand ONLY) per lot per month approximately.
You hv 10 K shares IE over 6 lots.
So you gain 6 X16000=Rs.96000/- (Rupees ninety six thousand ONLY) per MONTH EASILY.
In a year Rs.96000X12= Rs.11,52,000/- PER year.
IN FACT I SAY THAT YOU HAVE A GOLDEN GOOSE 🦆 THAT LAYS BIG GOLDEN EGGS EVERY MONTH worth Rs.96 K.
There are ways to increase this return, but that can wait.
Please digest this and think what you can do—have the shares & generate more income WITHOUT SELLING THEM, ONLY SELLING CALLS.
THIS IS ALMOST LIKE HAVING A BIG PROPERTY THAT GIVES REGULAR RENT INCOME!! 😀.
ONLY PROPERTY WONT GIVE 25% RETURN PER YEAR. IT MIGHT GIVE ONLY 2.5% PA.
There is some more details to this but that will confuse people more& complicate the issue. What I hv written is very much possible.
I hold 1600 shares of ITC among others , myself and I keep selling covered calls for income.
This is the most STRESSLESS & EASY way to earn Money from Stock Market without tension.
It is called covered calls strategy. NO RISK AT ALL.
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