I have small number of Gsec , liquidfund etfs .
Does any one have passive income idea by pledging this and buying some option strategy or some thing else ?
Instead of passive income, you will more likely get permanent loss.
Less than 2% of traders make more than FD as per Zerodha boss. More than 90% in loss over 3 years.
This is the environment for traders.
Now why would you trust anyone to give you profitable systems that will work in future ? Not just trust in them but their ability. Why would you trust someone who is selling his systems. Why is he not making money himself with it ? At best it can be a source of ideas and a starting point before you do your own work on it.
Even i don’t know how my systems will work - and i am making money for some time now. With others i don’t even know how they tested things.
Trading is a full time job imo, atleast it requires serious effort in early years and acceptance of uncertainty and respect for risk + need to have good capital.
Unless you want to become a trader and work through it inspite of above, just stick to basics and have some allocation plan between assets and work on your career instead. Much more likely to make you money long term.
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You make some very valid points — especially about risk, survivorship bias, and the illusion of “easy” systems. I completely agree that trading isn’t a shortcut to passive income and that it takes serious skill and discipline.
My post wasn’t about looking for “ready-made” systems or quick profits, though. I already hold some G-Sec and Liquid ETFs, so I was simply exploring whether there are low-risk ways to generate a small yield enhancement using the collateral — something like a covered option or conservative spread strategy, without turning it into an active trading pursuit.
Basically looking for ways to make efficient use of idle pledged margin rather than chasing speculative returns. I fully agree long-term wealth comes from asset allocation and steady compounding, not high-frequency trading.
Sharing ideas is the real use of a forum. For example, Securities Lending and Borrowing (SLB) is one such option that many investors weren’t aware of until others discussed it in forums — it allows us to lend securities and earn interest when they’re borrowed for short selling. It’s good to know that this facility is available in India through brokers like Zerodha:
What is SLB and how to avail it? (Zerodha Support)
Maybe there are some ways, i dunno. Better wait for other answers.
Covered call will need you to be invested in underlying i think, which you cant do with pledged margin.
Pledging + using margin for trading is a perfectly fine, i do it too. Just the trading part has to be handled with care. Dunno about low risk easy systems.
Good luck.
Put selling is best. Silver 135000 PE is at 300 levels, and only 7 trading days till expiry. Margin is 6 lakh and premium received 9000. So 1.5% in just 7 trading sessions
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Just 7 trading session… lol …
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Silver is very volatile. Down 4%+ just last night. That’s why premiums are juicy.