Writing covered call option


#1

How to write covered call option in kite?

rgds
Deepak


#2

You can write a covered call on Kite. To place a covered call, you just need to place orders to sell a call option and buy an equal quantity of shares of the same company. If you already hold shares of a F&O stock, you just have to sell the call option (above LTP) of equal value. You need to maintain sufficient margins required in order to write the call option.

If you’re learning to trading options you can also check out Sensibull. Sensibull lets you chose from among the best Option strategies for your market view and has useful tools like Option chain, Option Greeks, Events calendar etc. They are introducing a feature soon, where you can place a Covered call when appropriate, easily on their platform.


#3

Hi Kshiteesh

thanks for answering, can you please also answer on below

so if the covered call option has to be excercised ( if the price of stock becomes more than my strike price) then will the stock be automatically debited from my account thus settling the trade? i ask this beacuse on NSE i heard it is cash settlement only …thank you


#4

Physical/delivery based settlement is presently not applicable on all F&O stocks, its presently applicable to these 50 stocks.

So, if you’ve written a covered call in any of these scrips, you will have delivery obligation if the option goes in the money.

You can check out this support article to know our policy on physical settlement.