An Analysis of the Effectiveness of Index ETFS and Index Derivatives in Covered Call Strategy
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One of the most efficient methods of managing risk and creating extra income is the covered call technique. Holding the underlying asset while writing a call option on it constitutes the approach. If properly implemented, the method can be a useful instrument for generating money. The efficiency of using Nifty 50 Index ETFs and Index derivatives as the legs of a covered call strategy is examined in the study. The plan would aid in producing a steady cash flow in the portfolio, generating wealth. The paper back-tests the covered call strategy with the primary goal of determining the technique's viability. The study's findings could be used to find a powerful instrument for wealth generation.
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