Thursday, 25 October 2012

IDFC BULL CALL SPREAD STRATEGY


Here we present you Bull call spread option trading strategy which is explained in detail in our earlier post http://optioncallputtradingtips.blogspot.in/
IDFC BULL CALL SPREAD STRATEGY
LEG1: BUY IDFC  160 NOV CALL OPTION @ 5.10
LEG2: SELL IDFC 170  NOV CALL OPTION @ 2.2
COST =5800          
 RISK PER LOT = (5.10-2.2)*2000=5800
MAX RETURN 14200
Pay off table


Closing price
Lot size
net investment
Total Return
Payoff
140
2000
5800
0
-5800
145
2000
5800
0
-5800
150
2000
5800
0
-5800
155
2000
5800
0
-5800
160
2000
5800
0
-5800
165
2000
5800
10000
4200
170
2000
5800
20000
14200
175
2000
5800
20000
14200
180
2000
5800
20000
14200
185
2000
5800
20000
14200
190
2000
5800
20000
14200
195
2000
5800
20000
14200
200
2000
5800
20000
14200
205
2000
5800
20000
14200
210
2000
5800
20000
14200
215
2000
5800
20000
14200
220
2000
5800
20000
14200
225
2000
5800
20000
14200
230
2000
5800
20000
14200
235
2000
5800
20000
14200

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5 comments:

  1. Sharekhan does not allow me to sell options unless I have bought the same. Plz advise abt another broker who will let me do it at low rates.

    ReplyDelete
    Replies
    1. Sir,any broker will allow u to do so unless u have sufficent margins because option writing attract as much margin as futures and as far as brokerage is concerned u need to negociate with some brokers because it varies with volume also so give call to some of them ...

      Delete
  2. Hi. Can you please explain the strategy in detail. i am new to using strategies and have been using only conventional methods of trading. Thank you.

    ReplyDelete
    Replies
    1. Sir it is already explained with pay off table,we would be happy to answer any doubt u have in mind with option trading..

      Delete
  3. Dear Madam-ji

    I just saw the bull spread given for SESAGOA,
    just to recall the earlier recommendation w.r.t IDFC.

    Please to understand the following
    LEG1: BUY IDFC 160 NOV CALL OPTION @ 5.10
    LEG2: SELL IDFC 170 NOV CALL OPTION @ 2.2
    COST =5800
    RISK PER LOT = (5.10-2.2)*2000=5800
    MAX RETURN 14200

    what happened for the above earlier spread. please narrate the square-off date for the above and return calculated.
    Same would help me to co-related the proceedings for SESAGOA spread.

    Regards
    GB

    ReplyDelete