Friday 17 February 2012

BOOK PROFIT IN NIFTY STRANGLE

Nifty Strangle strategy rocks !!!! Book profit ...Book nifty 5400 call @ 200
Total cost Rs 140.

Friday 3 February 2012

NIFTY OPTION LONG STRANGLE STRATEGY

OPTION CALL PUT STRATEGY

                      
The long strangle, also known as buy strangle or simply "strangle", is a neutral strategy in options trading that involve the simultaneous buying of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying stock and expiration date.

NIFTY STRANGLE STRATEGY

LEG1: BUY NIFTY 5400 CALL @ 70
LEG2: BUY NIFTY 5000 PUT @ 70
COST =140          
 RISK PER LOT = 7000
RETURN = UNLIMITED

Pay off table


Closing price
Lot size
trading cost
Total Investment
Return from call
return from put
Payoff
4800
50
7000
0
10000
3000
4825
50
7000
0
8750
1750
4850
50
7000
0
7500
500
4875
50
7000
0
6250
-750
4900
50
7000
0
5000
-2000
4925
50
7000
0
3750
-3250
4950
50
7000
0
2500
-4500
4975
50
7000
0
1250
-5750
5000
50
7000
0
0
-7000
5025
50
7000
1250
0
-5750
5050
50
7000
2500
0
-4500
5075
50
7000
3750
0
-3250
5100
50
7000
5000
0
-2000
5125
50
7000
6250
0
-750
5150
50
7000
7500
0
500
5175
50
7000
8750
0
1750
5200
50
7000
10000
0
3000
5225
50
7000
11250
0
4250
5250
50
7000
12500
0
5500
5275
50
7000
13750
0
6750
5300
50
7000
15000
0
8000
5325
50
7000
16250
0
9250
5350
50
7000
17500
0
10500
5375
50
7000
18750
0
11750
5400
50
7000
20000
0
13000
5425
50
7000
21250
0
14250
5450
50
7000
22500
0
15500
5475
50
7000
23750
0
16750
5500
50
7000
25000
0
18000
5525
50
7000
26250
0
19250
5550
50
7000
27500
0
20500
5575
50
7000
28750
0
21750
5600
50
7000
30000
0
23000