Thursday, 16 August 2012

TATASTEEL SHORT STRANGLE STRATEGY

FRIDAY  being a shy day for the market ,followed by a close of 3 days we are giving a short strangle strategy. This strategy is aiming to encash option time value.
SELL TATASTEEL 400 CALL @9
SELL TATASTEEL 400 PUT   @9
TOTAL RETURN=(9+9)*500=9000
LOWER BREAK EVEN POINT=391
HIGHER BREAK EVEN POINT=409
 STOPLOSS WHEN CUMULATIVE PRICE GOES TO 27
OUTLOOK EXPIRY, BUT CAN BE BOOKED EARLIER ALSO IF REASONABLE RETURNS ARE AVAILABLE.

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