Saturday, 6 July 2013

SBI STRANGLE STRATEGY

Buy SBI 2000 call @25
Buy SBI 1800 put @ 21
COST =46    
 RISK PER LOT = 5750
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=2046
LOWER BREAK GIVEN POINT=1734

Pay off table...


Call Option Price
Strike Price
Call Option Price
Lot size
Return from call
Payoff
25
1800
21
125
0
-5750
25
1800
21
125
3125
-2625
25
1800
21
125
18750
13000
25
1800
21
125
34375
28625
25
1800
21
125
50000
44250
25
1800
21
125
65625
59875
25
1800
21
125
81250
75500
25
1800
21
125
96875
91125
25
1800
21
125
112500
106750
25
1800
21
125
128125
122375
25
1800
21
125
143750
138000
25
1800
21
125
159375
153625
25
1800
21
125
175000
169250
25
1800
21
125
190625
184875
25
1800
21
125
206250
200500
25
1800
21
125
221875
216125
25
1800
21
125
237500
231750

4 comments:

  1. can you tell till when we have to hold this strategy?

    ReplyDelete
    Replies
    1. just hold it till we give next follow up update

      Delete
  2. I enjoyed reading your post full of great tips. Thanks for including. I've already tweeted your post

    ReplyDelete
  3. Dear Nishita,
    Nice blog.
    Can you please explain the calculation in the table . i havnt got the calculation part under the column 'return from call'. Please waiting patiently for your reply.

    ReplyDelete