Arbitrage Strategy with equity in Demat Account


#1

Hi, is there a strategy to make risk free/arbitrage margin with underlying stocks already in Demat account. Thank-you for your help.


#2

Pledge the Stocks in DEMAT and Execute a Covered call Strategy.


#3

Hello, Thanks for your response, but at no time i would like to sell these stocks, is there a way to prevent the same. Thx


#5

You don’t need to sell your stocks with a covered call strategy…


#6

Yes thanks. I understand that but since its an obligation to sell, if Spot Price at expiry is greater than Strike Price, the delivery will be called for.

So should i then square the position before expiry…?


#7

If you’re holding substantial quantities of some blue chips, how about lending them in the SLB segment and make money? There’s almost zero risk in doing such transactions.


#8

If scrip is under physical delivery then close the position at-least on the expiry day if you don’t have intention to deliver stock, if scrip is not under physical delivery then obligation can be cash settled.