First lets see the fall of NSE in Mar 2021:

Source: https://money.rediff.com/index.html

On 03-Mar-2021 NSE closed at 15,245.60, and on 26-Mar-2021 closing, its 14,507.30. That is 700+ points fall.

Why Indian stock markets are falling in March 2021?

Disclaimer: This is my personal view not written or told by experts anywhere. Most experts are saying that it is due to resurgence of the Novel Coronavirus (COVID-19) in India. Sudden spike has spooked investors. Well that is also true. I am just adding one more reason of the fall written below.

Indian stock markets are falling because of the state elections in 5 states in the coming month – April 21. Apprehension (fear) is there as central ruling party (BJP) wants to win West Bengal and the fight is very tight between BJP & TMC. Read below for more details.

For some strange reason given below other than West Bengal results neither the stock market investors nor the politicians and general public of India are interested in the results because other than WB the results are clear. Let me explain:

1. Assam – It doesn’t matter if BJP wins or loses in Assam. 90% chance that BJP will form the government in Assam. It is very popular here and there is no alternative so a win for BJP is sure. Markets have already taken this into consideration. For stock market investors the result is irrelevant here.

2. Kerala – Well BJP has zero presence here. For stock market investors the result is irrelevant in Kerala except if BJP wins. However, they will not win. Currently there is only one MLA in Kerala. BJP did not even did any marketing here – why waste money 🙂 So only a miracle can make BJP for the government here. Kerala has over 90% literacy so chances are nil. Indian Stock Markets have already taken this into consideration.

3. Puducherry – Totally irrelevant whoever wins here. There is President’s rule here now. The Chief Minister seat is Vacant since 22 February 2021.

4. Tamil Nadu – AIADMK along with the National Democratic Alliance parties is ruling here and chances are that they will again. So markets have taken this account and not bothered. Even if AIADMK loses, this will not damage the image of BJP. So for markets the results of Tamil Nadu 2021 elections are irrelevant.

5. West Bengal – Did you notice even in the 2019 General Elections BJP did not advertise and market themselves so aggressively as they are doing in West Bengal? In fact, such aggressive marketing to win an election General or State is historic. I have never seen in my life such an election battle. More than election it is an ego battle between Modi & Mamta Banerjee. The fight is not between BJP & TMC, it is between the ego of Modi & Mamta. Stock market investors know this. So they are booking profits or taking stop losses. Action will happen after May 2, 2021 – the results day.

Not just investors the entire country is looking at this election – I mean the election results in West Bengal. Why? Because the results in West Bengal will decide the faith in this government or not. BJP did very well in the 2019 General Election in West Bengal, so the results here matter.

May 2, 2021, will decide the future direction of the stock markets. Till then unless a sudden reduction of coronavirus cases in India happens, the markets will not be able to cross 15,600.

If BJP wins – obviously its a joy for investors as they will know that the Modi brand is still intact and BJP cannot be defeated in the 2024 General Elections even if they do 100 mistakes more. They are doing a lot of mistakes, if you do not follow TV news channels a.k.a Godi Media, you may know 🙂

If TMC wins – the Modi brand will take a hit and obviously, investors will fear putting their money on the line at least till the results of UP elections are out. Which is next year. Stock markets may fall by at least 7-10% from 15,000. So it may test 13,600 and then bounce back.

If BJP wins then 16,000 is on the cards, of course if the situation of coronavirus also improves by May 2, 2021.

So invest as per your risk and manage accordingly. Do not forget to hedge your option and future trades.

Lots of investors are still confused when they hear XYZ company is buying back its shares from the public. They do not understand what exactly is Share/Stock Buyback/Repurchase. 

Please note that all these mean the same thing:

– Share Buyback
– Share Repurchase
– Stock Buyback Share or Stock Buyback or Explained
– Stock Repurchase

Let me first explain in short what exactly is Share Buyback.

A share buyback happens when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors. Once this happens the owners of the public and private investors decrease in the shareholding pattern. One immediate and short term effect of this is that the EPS (Earning Per Share) increases of the company. This increases the valuation of the company in the stock market and may take the price of its share a tad higher.

Since 2010, share buybacks have overtaken dividends as a preferred way to return cash to shareholders. This usually happens with cash-rich companies. 

Here a few reasons why companies do share buybacks:

• After huge profits sometimes financial/management restructuring is required. According to stock market laws the management has to declare dividends for their shareholders. If the management sees more benefits in buying back of shares looking at future dividends they do so to keep money with themselves. 
• By buying back the shares Earning Per Share (EPS) will increase which is floating in the free market. This leads to an equity value increase, thus more demand for the company shares as the share looks financially attractive. Do not forget that with the share price increase the profit of the management also goes up. 
• If you look at indirect effect – more money with management means in future they can expand the company. This generates employment which is good for the economy of the country. 

Is there any downside of share buybacks?

Yes, mostly share buybacks are financed via a loan or debt. This can affect cash flow in a negative way. However, this is short term as the management does due diligence before announcing a share buyback.

Most Important Question that keeps worried a novice investor. Will I be forced to sell my shares to the management?

Answer: No. Who sells a stock and who buys happens at the market place. Suppose in a day 1000 shares were bought and sold of a company then it just that. It’s not one to one selling or buying. It is just that 1000 stockholders sold their stocks to 1000 investors who were interested in buying the shares of that company. Similarly, when news of share buyback is released in the public domain via media/social media by the company in most cases the share prices jumps and investors who are making a profit selling their holdings. So assuming in the above case when other days 1000 shares were sold by investors and bought by the investors, on the share buyback day 1000 shares were sold by investors but out of that let’s say 100 was bought by the management of the company and 900 was bought by the retail investors. Of course just like normal trading days where we do not know who sold and who bought the shares, on this day too it happens in the market place. So no one is forced to sell their shares. If you are not interested in selling just do not place your stocks for a selling order. 

What happens after the share buyback?

Suppose only 1000 shares of a company XYZ were floating in the stock markets and 100 shares were bought back by the management then from the T-1 day after the share buyback day, the free float of that company’s shares in the open market will be only 900.

Let me explain in details the share buyback.

Suppose there are 10 people who plan to start a business. They find a place in a good location and start a restaurant. Assuming that they put the same amount of money to open the restaurant, in that case, each one will get 10% of the share of the profits made. Now suppose in the first year of business they made a profit of 10 lakh. 10% of 10 lakh is 1 lakh. Each owner will get 1 lakh at the end of the first profitable financial year. 

Similarly in future years also profit’s share will be equally divided among all owners of the restaurant. This is called dividend policy. Each owner gets a dividend as per their shareholding (ownership). No one can claim more or deny the dividend. 

Of course, if any owner is not interested in the dividend they can reinvest the money received to buy more shares of the company if they foresee better growth of the company and dividends in the future. How this is done? For the time being, just imagine that every owner got a legal paper stating that the owner will get 10% of the profits every year. Now suppose one owner “A” talks to another owner “B” and offers him some money in return for the ownership of his percentage of share of profits for the rest of the term till the business exists. “B” is interested as he needs money for some work and sells his share to “A”. This is a “buyback policy“.

As you can understand, there are 9 owners of the company now. “A” and “other 8”. Henceforth the “other 8” will get 10% of the profits from the company each year whereas “A” will get 20% of the profits. Likewise, owners who don’t need money when a dividend is declared can do a *share buyback* in exchange for a greater percentage of profit made in the future.

To illustrate this with an example lets now take the same example above. After the share buyback done by “A” the “other 8” owners of the company will still get 1 lakh each but now “A” will get 20% which is 2 lakh. If the company makes more profit in the future “A” will get more profit share than the “other 8”.

Note that company is now making same profit but “A’s” profit share has increased by 100%. So, share buyback helps the owners return increase at a rate higher than what the business is growing at. This must have given you an idea on why owners go for share buybacks.

You must have noticed that 9 out of 10 times share buybacks are done only when a company is performing very well over time and is expected to grow at a faster pace in near future. This is the time owners buyback a portion of shares from retail traders. In other words a share buyback is owners investing in their own company for enjoying more profits in the future.

However the above example is simplified way of share buybacks, with public companies its a bit more complicated. With public companies the process is long – they have to inform to SEBI, check financials, future growth assumption, check the after effects of buyback, free cash flow availability of the company, capital allocation, dilution, and multiple expansion/contraction. Note that the after effect of buybacks in a public company may be different than what they assume therefore share buybacks are done after a lot of research in big companions.

Free Cash Flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the non-cash expenses of the income statement and includes spending on equipment and assets as well as changes in working capital from the balance sheet. Free cash flow is an important measurement since it shows how efficient a company is at generating cash. Free Cash Flow (FCF) is also a major indication of the future price of the stock.

Benefits of Free Cash Flow (FCF): Helps in share buybacks, pay dividends to all stock owners, make acquisitions (of a fast growing company which may become so big in future that it may be a threat to the survival of the company or just another good company), or simply pile up cash on the balance sheet. The management decides how to allocate Free Cash Flow to the possible activates.

Dilution: Dilution occurs when a company issues new shares. This results in a decrease in existing shareholders ownership of the company. For example if a company has 100 shares in the market and issues 10 more shares, then the value of each share goes down by 10%, making each share less valuable.

Stock dilution can also occur when holders of stock options, such as company employees, or holders of other option-able securities exercise their options. It is now possible in India too. Buyback is exactly opposite. The purpose of buybacks is to increase shareholder returns by reducing the number of shares outstanding over time.

But many companies negate a lot of this benefit by simultaneously issuing vast amounts of stock to employees, via share based compensation (SBC). This is also important to retain good employees in the company.

Now the million dollar question – is it wise to invest in a company for the long term (min 10 years) which has a good FCF (Free Cash Flow) and does share buybacks often?

Answer: YES. In my experience a 10% increase YOY in FCF (Free Cash Flow) of the company will lead to approx 15-18% CAGR (Compound Annual Growth Rate) at the end of 10 years. This will make a good investment.

Berkshire Hathaway (CEO: Warren Buffett) uses this formula to chose company to invest for the long term. He has explained in details about this in a letter to the Shareholders of Berkshire Hathaway Inc. on February 25, 2012 – Berkshire’s Corporate Performance vs. the S&P 500.

In short, yes you can invest in company that goes for share buybacks often and has good Free Cash Flow (FCF) and are increasing the FCF year on year.

Hope this post will help you understand share buybacks in a better way. If you have any doubts please do write in the comments section below.

This post was sent to my email subscribers on Mar 1, 2021. If you want to receive such info in your email please subscribe above.

I hope you know by now that the margin blocked for Intraday trades is increasing in a phased manner from Dec 2020 and will go on till September 2021.

This circular was put out by SEBI in Jul 20, 2020. It basically says to increase intraday margins in a phased manner from Dec 2020 to Sep 2021.

Here is the details of the margin increase in 4 phases. The new changes will take effect in 4 phases:

Phase 1 (Dec 2020 to Feb 2021) – The minimum margin the broker has to collect while entering a position is 25% of the prescribed limit.

Phase 2 (Mar 2021 to May 2021) – (As on the date this post was written – we are in this phase now) The minimum margin the broker has to collect while entering a position is 50% of the prescribed limit.

Phase 3 (Jun 2021 to Aug 2021) – The minimum margin the broker has to collect while entering a position is 75% of the prescribed limit.

Phase 4 (Sep 2021 onward) – The minimum margin the broker has to collect while entering a position is 100% of the prescribed limit.

So what’s the bad news?

For Future and Options (sellers), for intraday trades under MIS, from 01-Sep-21 onward, all brokers will block 100% of the margin that is blocked now (Mar 2021) for NRML (overnight) positions. So technically as far as margin blocked is concerned there will be NO difference between MIS and NRML trades for F&O positions.

However for equity trading, 50% on applicable VAR + ELM or 20% of trade value whichever is lower will be blocked for equity intraday trading. Example: If you trade stock worth 5 lakhs, your broker will block 20% of 5 lakhs, which is 1 lakh. This means you will get 5x leverage, not more. Gone are the days when we used to get 10x or more leverage. 🙁

What you can do?

If you are good at intraday trading just bring more money to your account. Your returns in percentage terms will reduce but you will still make some money.

If you are average at intraday trading, want to practice more and be perfect, then your only option will be to hedge the trade to get a reduced margin.

The benefit of a hedged trade is that suppose your position is at a loss at 3 pm – you can convert it to an overnight position (MIS to NRML) and wait for the next few days to make a profit. You will be allowed to convert MIS positions to CNC/NRML only if you have sufficient margins in your account. Since from Sep 01, 2021, in the MIS positions margin blocked will be the same as NRML, you can convert them to NRML whenever you want.

In a hedged trade, margin blocked is less, so you can easily convert them to NRML and when you get some experience you can trade more lots.

Here is an example:

Suppose today is Wednesday, 01-Sep-2021.

The intraday 100% margin block rule is in place.

Nifty is at 16000 (assumption).

A trader assumes it’s going up and takes this debit spread.

Trade 1) SELL NIFTY 16200 CE SEP21

Once this trade is completed margin blocked will be above 1 lakh approx. in MIS or NRML. (Assuming its MIS)

Trade 2) BUY NIFTY 16100 CE SEP21 (Assuming this is also MIS)

Now due to the hedged margin rule suddenly margin reduces to 40,000 approx. or less.

I hope by this time you have understood how to reduce the margins on intraday options trade. Note that it’s an intraday trade and one option is sold but hedged and margin blocked is 40000, much less than the intraday 100% margin block rule as on Wednesday, 01-Sep-2021.

In my Nifty and Bank Nifty courses all 7 options and futures strategies are 100% hedged, so for all the strategies margin blocked has reduced (not increased) since the new margin rule has come into effect.

Click here to enroll for the course.

This post was written on 01-Feb-21 at 11.46 am.

Today, Monday, 01-Feb-21, is Union Budget 2021 day. Its live now in the Indian Parliament. Finance minister Nirmala Sitharaman is announcing the budget in the parliament now.

Whenever there is a major financial event, as a trader you should keep a track on India VIX:
https://www.moneycontrol.com/indian-indices/india-vix-36.html

As on 11.46 am it has already crashed more than 3.9% because the announced has started – the fall will be much swift from tomorrow. With time and very fast it will keep crashing irrespective of the movement of Nifty/stock markets.

India VIX 01-Feb-2021

What Will Happen?

Options buyers will suffer as the premiums will erode like ice melting, today and tomorrow especially.

If you have bought options and if in loss in such times, I suggest take a stop loss save as much as possible.

Option sellers have luck on their side on these melting India VIX days after the major event ends. Even if wrong up to some extent option sellers will benefit.

Update on 03-Feb-21 – see this graph of India VIX:

Note: India VIX was the highest one day before the budget 21 which was Friday, 29-Jan-21. It started to fall from the Budget day – 01-Feb-21. It will keep falling in future too.

Update on 04-Feb-2021 – India VIX dropped to 23.02 which is 3.07% less than previous closing:

India VIX 04-Feb-21

Conclusion:

For option traders India VIX is a very important factor to decide the future action. Its always good to buy options when India VIX is low and increasing. Which means you can buy options 3 to 4 days before a major financial event like union budget, RBI policy, state or general elections etc. And sell them just before the event day.

Once the event day is over you can start selling options.

Hope this article will help you to take a decision on when to buy and when to sell an option.

If you do my course you will be able to trade whenever you want and without too much risk as all trades are hedged. And most importantly you will not have to continuously watch the markets.

In this post, I will discuss why holding a few good stocks forever is good. What is forever? 10 years or more.
What is the likelihood of holding a share for 10 years? Well very likely. But how many investors hold even a single share for 10 years? Very few.

Well, I do have a course on how to select stocks to hold for the long term. I do not have a page on that because of the reason given above – not many investors hold a share for 10 years. If interested you can WhatsApp me.

We all know Warren Buffett is one of those who have made billions out of stock investing. I do not think anyone else will beat his returns in future. Why because we have become short-sighted as far as returns are concerned.

Here is some important information and quotes by Berkshire Hathaway CEO Warren Buffett:

• Berkshire Hathaway CEO Warren Buffett is continuously ranked as one of the richest people in the world. Berkshire Hathaway’s CEO and the sixth richest person in the world with a net worth of $78.4 billion as of August 23, 2020, on Bloomberg Billionaires Index, Buffett owns no mega-mansions, supercars, and yachts. He is among the very few super-rich who neither believes in living life king size nor engage in a splendid display of wealth. Source: https://www.financialexpress.com/industry/warren-buffett-breakfast-at-mcdonalds-flip-phone-for-calls-how-6th-richest-person-spends-his-fortune/2063096/ (recommended read)
• He is seen by some as being the best stock picker in the world, with his investment philosophies and guidelines influencing numerous investors.
• One of his most famous sayings is “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
• Another one is “If the business does well, the stock eventually follows.”
• The third is “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
• And the BEST one is “Our Favourite Holding Period Is Forever.”

In this post I will discuss his best quote till date “Our Favourite Holding Period Is Forever.”

To start with let me give you an example of Reliance Industries Limited stock (NSE: RELIANCE, BSE stock: 500325, Group (A) RELIANCE, INE002A01018)

This is the most popular stock in India, and of course a fundamentally strong stock. Now let me show you the return this stock has generated from 2002 to 2020 or 18 years.

See this image on 05-Jul-2002 Reliance was trading at 53.01:

Reliance 05-Jul-2002

And on 18-Sep-2020 it was trading at 2305.70:

Reliance 18-Sep-2020

ROI: 2305 is 4349.05% of 53.

Had someone invested Rs. 2,50,000/- (Two lakh 50 thousand only) he would have now Rs. 1,08,72,625/- (One Crore Eight Lakh 72 Thousand). That’s a profit of Rs. 1,06,22,625/- (One Crore Six Lakh 22 Thousand).

This is what long term investment can do. Wait there is more. Read this post on how to make crores from the stock markets to see how our parents could have made 800+ crores on an investment of just Rs. 10,000 in ITC.

Article written on: Monday, 25-Jan-2021

All stock traders small, big and HNIs even FIIs will keep an eye on on the Budget that will be presented by Finance Minister Nirmala Sitharaman on February 1, 2021. The Budget is being presented at a difficult juncture for the economy. According to the first advance estimates, India’s economy is projected to contract by 7.7 per cent in 2020-21.
This budget will be presented in a very interesting situation as far as stock markets are concerned.

Why?

First, read the above paragraph. I repeat – This Budget 2021, is being presented at a difficult juncture for the economy. According to the first advance estimates, India’s economy is projected to contract by 7.7 per cent in 2020-21.

Now see this – Indian stock markets are trading at the all-time high range:

Nifty EOD 25-Jan-2021

See the above image of stock markets and now see this graphical representation of GDP of India since Jan 2018.

India GDP Growth Annual

I am sure you must have read on other websites that markets may see a crash.

What is a Stock Market Crash?

A crash is official if the stock markets fall 10% since its recent high within 2 monthly expiry or 60 days.

Recent high for Nifty was 14600 approx. So 14600 – 10% = 13,140. It means if Nifty reaches 13,140 by end Feb 2021 – it will be an official crash.

Will that happen?

Well, this is tricky – so-called experts tell you and confuse with a lot of jargon and then say yes or no.

My suggestion – if you are unable to take the risk – please wait for now and do not trade. Waiting for a few days to trade, will not make you a bankrupt. But one mistake may make you lose a few thousand rupees. Of course if you hedge and trade then fine you can because the risk is limited anyway. When the risk-reward favours risk more and reward less, like 10 days before and after the budget or any major event, it’s better to halt trading. Sit and watch the markets. Read as much as possible about the budget impact and related news, then make a decision once the weather clears.

Here is what may happen after the budget is announced and is in public domain

If the budget favours the middle class and rich (unfortunately markets do not care for the poor), it may cross 15,000 and if it’s bad for them 13,500 will be breached on the downside.

On top of that India VIX will now rise till the budget day – February 1, 2021, and will start falling from the next day.

Here is India VIX EOD 25-Jan-2021:

India VIX 25-Jan-21

So what will happen?

February 21 month’s option premiums will not decrease fast like normal days until the budget day 1-February-2021. If you are an option buyer you MAY benefit – if you are a seller please wait till the budget day, and then sell.

I keep sending investment ideas, not tips, to my customers who have done my course.

Here is what they get as my paid members which is not sent to free newsletter subscribers.

On Jan 18, 2021 at 1:28 PM, I sent a mail to my mailing list that has email of people who have done my Nifty or BN course.

Here is the screenshot of the email sent date as proof (a copy of the email goes to me as well):

Here is the screenshot of the email sent:

Copy of the email in text (only after the stock already rallied):
=======================
Hi,

This email is sent to paid customers only. It will not be published in my site or anywhere else.

Bajaj Finance Ltd. currently trading at 4,743.95 (18-Jan-21), is a good stock to buy. You can invest some and keep some money for another 4-5% fall and then exit at 10% profit at wherever levels is your average.

If you do not want to invest more you can exit at 5200.

Please note that I may or may not give an exit call. Do not take a stop loss. Bajaj Finance Ltd. is a fundamentally strong stock. Hope you understand why people like us make money from stock markets.

For example, ZEEMEDIA a Group (B) stock is also a good investment currently – but I advise not to even buy one stock as its Group (B) stock.

Just invest with kings and you will always be happy and a proud investor.

=======================
Today is 21-Jan-21 (3 days after the email was sent). See where is Bajaj Finance Ltd. It’s almost 10% up from 4743 levels:

Like this people who have not done my course are not in my paid email list so they miss investment opportunity for life plus a lot of extra advice that I sent to them on stock markets, which is never sent to them.

For this, I do not charge anything.

So apart from learning the strategies, you will also get ideas on investment.

If you want to do the Nifty and Bank Nifty course you can pay the fees.

Click here to see the fees and pay online for my course.

After payment I will send you the strategies.

You can ask me questions on the strategies on WhatsApp or email or phone.

Once payment is done I will manually add your email in my paid list for life.

Then you will start getting my paid emails as well.

I kept telling via my emails, that Nifty is due for a fall. If you have not subscribed to receive my emails please register here:
https://www.theoptioncourse.com/beginners-get-option-beginners-course-free/

Recently it fell from 14600 levels to now 14300.

NSE on 18-Jan-21

Source: https://money.rediff.com/index.html

What will happen next?

Two major events are coming:

1. 20-Jan-21 – Biden taking over as President of USA. (I think if he takes the oath and become President of USA he will be the oldest man to become the President of USA.

2. Covaxin (The Bharat Biotech vaccine is a vaccine that aims to protect against COVID-19) vaccination results will be out by end of Feb 2021.

If Biden takes decisions that may affect Indian businesses in a negative way, markets may fall further. If its positive markets will rise.

Right now we do not know the results of either 1 or 2. That’s the reason why India VIX is falling:
https://www.moneycontrol.com/indian-indices/india-vix-36.html

At the time of writing this email, it was 24.79. Quite high for trading derivatives. Please note it changes during trading hours and will be different when you see it.

Please note that India VIX does not have much impact on equity investments except during election times or major economical events. So those who do not trade derivatives like options and futures, need not worry.

But high India VIX is a worry for you if you trade derivatives. High India VIX means huge moves will happen, like it has happened today and happening intraday.

So please trade carefully.

P.S: If you want to trade peacefully without stress and without bothering about markets ups and downs, you can do my Nifty monthly income and Bank Nifty weekly income course. You will learn properly hedged strategies to make approx 36% a year. Minimum required to trade is 45000 (as in Jan 2021).

You can pay the enrollment fees in the course page here.

Option theta is very important indicator for traders whether you want to buy or sell options. It helps to predict how over time the price of the option will change.

Theta is time value of options, means options expire on a certain date so their life is limited. Time value is built in the premium of the option, of course it ends when the option expires on the expiry date. If you want to read Option Greeks in details you can read here.

Time decay accelerates as an option nears its expiration date. It is the fasted on the last day of its life. Option cannot be traded once the market closes on its expiry date. All the traded contracts are settled for profit and losses on this date.

See this image to understand the graph of time premium expiration w.r.t time. Time decay is fastest near the expiry day. This is one reason why traders sell options near its expiry.

The rate of return on investment will be faster if it expires fast. Therefore many traders prefer to sell weekly options rather than monthly options. I have a course on weekly options that will teach how to sell weekly options near expiry with hedge so that the risk is highly reduced in a black swan event.

Should you sell index or stock options?

Stocks are very volatile in nature. Selling options near the expiry may get very risky as the premium you get will not be sufficient to overcome the trading costs. Therefore if you want to sell stock options they should be expiring in more than 15 days else you will not get enough premiums to take the risk of selling options.

In my Conservative Option Course there is a stock option selling strategy that gives minimum 15000 per month without taking too much risk.

In the US leap options are very popular. Leap options are options expiring very far of months like 6 months. However in India there is hardly any volume in stock options in the next month. Even if you are able to sell next month’s option you will find it difficult to get a buyer when you want to book profits. Therefore you can sell stock options for the current month with hedge.