How to deal with nifty future premium during rollover. As currently monthly premium is above 100. Which mean 1200 total we have to pay if we rollover nifty every month mena approx 7-8% premium.
How we can minimise or have other options ??
Buy niftybees
Premium or the cost of carry is what you pay for being leveraged.
Either buy in spot, which would be the same as blocking entire capital or use covered calls to partly fund the cost.
ofc, covered calls can result in losing out profits in uptrends if it goes ITM.
Collar is another way to sell CE and Buy PE to help fund some of the PE cost.
If you are perpetually long, it makes more sense to hold in spot but if you are trading, ie.exit and re-enter lower with some frequency, Futures contracts are preferred.
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