💰 Cash Generation Model (Options Selling)

  • Initial Capital: ₹7 Lakh for cash generation
  • Method: Option selling strictly based on Greeks
  • Target Takeaway: 5% – 6% on invested capital
  • ₹7 Lakh Cash Gen: ₹49,000
  • ₹28 Lakh Cash Gen: ₹2 Lakh
  • Pledging Stop: Post June 2027 (first birthday)
  • Collateral Rule: Cash generation only via available collateral
  • ₹35 Lakh investment with 20% haircut gives ₹28 Lakh collateral to generate ₹2 Lakh per month

Philosophy: Cash generation is capped, controlled, and rule-based.

📅 Monthly Investment Plan

  • Start Date: From 1 March onwards
  • Monthly Deployment: Buy distributed investments of approximately ₹2 Lakh + cash generation amount
    • NIFTY BEES – 30%
    • MID – 30%
    • JUNIOR – 20%
    • INVIT – 10%
    • REIT – 10%
  • Diversification calculator

Philosophy: Cash flow first, compounding second.

🏗️ InvIT – Passive Income Rules

  • Passive Income Vehicle: InvIT (PowerGrid)
  • Passive Income Target: ₹2 Lakh

InvIT Compounding Conditions

  • Stop InvIT compounding if price is greater than 105
  • Also stop if dividend income reaches ₹2 Lakh. Target is to reach ₹2 Lakh per month.
    Philosophy: Income discipline matters more than price excitement.

    Notes:

  • 1⃣ Options: Stop pledging once cumulative cash generated reaches ₹2 lakh. Thereafter, investments in BEES will continue solely for compounding purposes. Options selling will be carried out only with limited capital.
  • 2⃣ BEES (Equity ETFs): Stop fresh investments once ₹25L total is invested across all NIFTYBEES + MID150BEES + JUNIORBEES; let them compound on their own.
  • 3⃣ InvIT → Next: Invest in InvITs until ₹2L/month distributions are reached; then stop InvITs and shift new capital to REITs & metals.
  • 4⃣ Adjustment Rules for Iron Condor: If stock falls then convert to bull put spread, if stock rises then exit with loss.