Thursday 31 July 2014

RCOM OPTION STRAP STRATEGY

BUY  ONE  LOT RCOM 130 AUG PUT @2.8
BUY TWO LOTS RCOM 150 AUG CALL @2.3
COST =5.1
TOTAL RISK  = 15800
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=155.1
LOWER BREAK GIVEN POINT=124.9
 For Pay off table click on read more:


Strike Price
Call Option Price
Strike Price
Call Option Price
Closing price
Return from call
return from put
gross return
payoff
150
2.3
130
2.8
100
0
60000
60000
44200
150
2.3
130
2.8
110
0
40000
40000
24200
150
2.3
130
2.8
120
0
20000
20000
4200
150
2.3
130
2.8
130
0
0
0
-15800
150
2.3
130
2.8
140
0
0
0
-15800
150
2.3
130
2.8
150
0
0
0
-15800
150
2.3
130
2.8
160
40000
0
40000
24200
150
2.3
130
2.8
170
80000
0
80000
64200
150
2.3
130
2.8
180
120000
0
120000
104200
150
2.3
130
2.8
190
160000
0
160000
144200
150
2.3
130
2.8
200
200000
0
200000
184200
150
2.3
130
2.8
210
240000
0
240000
224200
150
2.3
130
2.8
220
280000
0
280000
264200
150
2.3
130
2.8
230
320000
0
320000
304200
150
2.3
130
2.8
240
360000
0
360000
344200
150
2.3
130
2.8
250
400000
0
400000
384200
150
2.3
130
2.8
260
440000
0
440000
424200
150
2.3
130
2.8
270
480000
0
480000
464200
150
2.3
130
2.8
280
520000
0
520000
504200

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