for those who are not aware of call- put selling........

here i tell u procedure of icicidirect how to sell call or put.....

for ashok leyland
icicidirect code is ashley
u hve to go to f&o
thn thier u hve to go to place order option....
thn u hve to fill code ashley and thn change the option to call where future is written below the column where u will write code ashley
thn it will show whole page containing rates of calls
thn go to call nov @ 47.5...thn click to sell option....
enter price on whch rate u wana sell and proceed....

for this u must hve limit of atleast 14000 for call selling thn for future u must hve 50000 in ur limit....
as if we need to buy future thn we can....

so in total u need 14000+50000=64000
u must hve some more money if margin increases....
so if u ihve total of 1lac....
u can easily manage ur positon....
dnt jump if dnt hve 1 lac or more...

this is because tht u need more margin because......

whn u will sell call at 47.5 thn there will be a trigger price whch will come around 44.....
it means tht if ashok leyland crosses 44 ur call will automaticaly square off......so to avoid tht u need to rasie tht trigger price.....to rasise it u need to add margin in it.....
but as i hve told u to buy future if it crosses resistance thn if it go above even up to
52 u hve to increase ur trigger price of call above 54.....but there is one sequrity tht as above u buy future as future increses u will get money day by day if it clooses above previous day so tht profit whch will cum frm can be used to add margin to raise trigger price of call.....

i thnk i hve explained almost everything.....
if u want more plz tell me.....


NOTE:- THE PRICE AND MARGIN IS CALCLULATED ON 30 OCT 2007...
THESE MIGHT NOT BE SAME AS OF TODAY...... THIS IS ONLY TO EXPLAIN HOW WE CAN DO CALL-PUT SELLING..