Bull Call Spread - April 2016
The "Bull Call Spread" is one of the least difficult techniques that a trader can send to shield the capital from being getting disintegrated. It is a defence technique which includes 2 or more alternatives that are all the while opened and held till the expiry of the contract, or at the development of good benefit that is to be taken out of the table.
The way to this methodology is, the hidden stock or index ought to be either tolerably bullish or bearish, yet not aggressive. The objective of this strategy is to fence all capital from being getting eroded. It is to be understood here that the strategy is not meant for earning huge profits from the contracts, but a decent profit which will be conservative approach. As I say, this is particularly tailor-made for the people who are retired and who wanted to make some gains that are many a times better than fixed deposits.
The April Month Bull-Call Strategy for conservative traders is below:
7800 Call Writing 132.00 MP (45K margin)
7700 Call Buy 190.00
Qty: 75 each
Premium Paid 190 x 75 = 14,250
Margin = 45,000
Total Cost = 59,250
Exp Return = 3,150
Returns: 5.31 per cent
To know more about the Bull Call Strategy, please google search the term "bull call strategy".