Arbitrage Strategy with equity in Demat Account


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


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


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


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


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…?


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.


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.


Thanks, how do I go about the SLB segment, is there any company that could help facilitate the same or is there a way for me to do it myself.