Profiting in the times of Corona!

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“Crises and deadlocks when they occur have at least this advantage,that they force us to think.” Jawaharlal Nehru.

The Corona Crisis

The crisis at hand has left us all,  whether advisors or investors, with an impossible task – to decide what to do with our underlying  investment portfolios – exit or maintain- or how to recover some earning out of this  portfolio even  as markets remain extremely vulnerable and volatile. Or what trades to undertake and enter – exit quickly!

If one listens to markets carefully, markets always have a solution at hand! Provided we are ready and willing to listen to what its telling us!

Take the current situation – Haven’t we now become well aware that

  • If markets move down in this period of crisis, volatility shoots up – this in turn not only means wild moves but also means that call and put options become expensive (How do we leverage this Opportunity?)
  • In an age of algos, and arbitrageurs, opportunities come and go quickly- Are you studying the PL Mobile App Analytics and Scanners sections regularly for these ideas before someone else neutralizes these?
  • If markets move wildly, time is of the essence and quick execution is vital – are you aware that the PL Mobile App allows multilegged strategies to be executed at a single click from the Analytics and Scanners sections?

Making money isn’t as easy – but isn’t as difficult either!

One needs to harness all possible time and focus to ensure that the current resources made available – high options premia and a powerful mobile app- can be converted to income generating  opportunities!

Illustration: Using the App for Covered Calls

Covered calls are one of the most common and popular option strategies, and can be a great way to generate income in a flat , negative or mildly uptrending market or stock. A covered call is when you own (or buy) the underlying stock and then sell someone the right to buy the stock (Sell a call) if the strike price is reached before expiration. Learn more at

Why would you do that? Well that’s where the PL Mobile App comes in.

For instance, the Analytics>Bullish>Out of Money section shows that Indus Ind Bank /April 30 / Rs 420 Strike call option  is trading at Rs 50! When  the underlying is Rs 395/-.

This means  , if you have the stock, and  are willing to sell it to someone at Rs 420, you will not only make the 25 Re profit on the stock holding but also the  premium of Rs 50! That’s a straight 22% in the pocket!

Why would you do this?

Well, either because you

  • Are a trader and this opportunity was very good – as you get a natural stop loss at Rs 395 less Rs 50 – Rs 345 and have a fair chance to make Rs 25 (Rs 420 – Rs 395) if markets move up OR Rs 50 if the stock doesnt move!
  • Are an investor holding Indusind Bank in your portfolio, and believe that it cannot go above Rs 420 and if it does, you don’t mind having earned the Rs 50 anyway in the call premium  which was a decent return anyway on the stock.
  • Are an investor who is going to keep IndusInd Bank in portfolio for longer run and just want to make an extra 50 bucks plus are very bearish on markets!

Even if you are wrong and the stock shoots upto Rs 600 – you earned the Rs 50 plus the Rs 25 of profit (Rs 420 minus your cost , as above that the returns on the stock will be eaten away by the losses on your call) = Rs 75 , which even if you bought the stock at Rs 600 or Rs 1000 means you earned a cool 7.5%!

Of course, if you are an investor – corona has put luck on your side – you could choose to sell even further out of the money call options and still earn a decent return as volatility has made options expensive!

Why should you do it now?

Well, its as simple as this :

a) High premia , like Rs 50 on a call option, are a rare phenomenon  and normally such premia levels are not seen so make hay while the sun shines! And

b) You (We are sure!) are locked up at home so have  time to study your portfolio, the PL Mobile App and  the strategies that can be applied readily using the App!

When was the last time you had the time, the app and the high yields on options all at the same time!

As Pandit Nehru said, the time to think is now! Corona has given us the resources – how to use them is upto us!

Download the PL Mobile App to use these strategies from Playstore/Applestore or visit us at for more information.

Quick Note on Call Options:

When an option writer sells a call option, the call option buyer (holder) gets the right but not the obligation to buy the underlying stock. However, it becomes obligation on the part of call writer to buy the underlying stock for the call holder when he exercises his rights.

The option buyer (holder) has to pay the premium to the seller (writer) in exchange for the right conferred by the option. The premium depends on the strike price, volatility of the underlying stock, and time remaining to expiration.

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