Friday, 31 October 2014

HDIL STRANGLE STRATEGY

BUY HDIL 95 CALL @ 1.4
BUY HDIL 70 PUT    @ .90
COST=2.3
RISK PER LOT =9200
RETURN=UNLIMITED

UPPER BREAK GIVEN POINT=97.3
LOWER BREAK GIVEN POINT=67.7
PAY OFF TABLE:


Call Option Price
Strike Price
Call Option Price
Closing price
Return from call
return from put
Payoff
1.4
70
0.9
50
0
80000
70800
1.4
70
0.9
55
0
60000
50800
1.4
70
0.9
60
0
40000
30800
1.4
70
0.9
65
0
20000
10800
1.4
70
0.9
70
0
0
-9200
1.4
70
0.9
75
0
0
-9200
1.4
70
0.9
80
0
0
-9200
1.4
70
0.9
85
0
0
-9200
1.4
70
0.9
90
0
0
-9200
1.4
70
0.9
95
0
0
-9200
1.4
70
0.9
100
20000
0
10800
1.4
70
0.9
105
40000
0
30800
1.4
70
0.9
110
60000
0
50800
1.4
70
0.9
115
80000
0
70800
1.4
70
0.9
120
100000
0
90800
1.4
70
0.9
125
120000
0
110800
1.4
70
0.9
130
140000
0
130800
1.4
70
0.9
135
160000
0
150800

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