Monday, 2 February 2015

SBI STRANGLE STRATEGY

BUY SBIN 285 PUT @ 4.8
BUY  SBIN 350 CALL @ 4
COST=8.8
TOTAL RISK  = 11000
RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=358.8

LOWER BREAK GIVEN POINT=276.2
Pay off table:


Strike Price
Call Option Price
Strike Price
Call Option Price
Strike rate
Closing price
Return from call
return from put
Payoff
350
4
285
4.8
5
250
0
43750
32750
350
4
285
4.8
5
255
0
37500
26500
350
4
285
4.8
5
260
0
31250
20250
350
4
285
4.8
5
265
0
25000
14000
350
4
285
4.8
5
270
0
18750
7750
350
4
285
4.8
5
275
0
12500
1500
350
4
285
4.8
5
280
0
6250
-4750
350
4
285
4.8
5
285
0
0
-11000
350
4
285
4.8
5
290
0
0
-11000
350
4
285
4.8
5
295
0
0
-11000
350
4
285
4.8
5
300
0
0
-11000
350
4
285
4.8
5
305
0
0
-11000
350
4
285
4.8
5
310
0
0
-11000
350
4
285
4.8
5
315
0
0
-11000
350
4
285
4.8
5
320
0
0
-11000
350
4
285
4.8
5
325
0
0
-11000
350
4
285
4.8
5
330
0
0
-11000
350
4
285
4.8
5
335
0
0
-11000
350
4
285
4.8
5
340
0
0
-11000
350
4
285
4.8
5
345
0
0
-11000
350
4
285
4.8
5
350
0
0
-11000
350
4
285
4.8
5
355
6250
0
-4750
350
4
285
4.8
5
360
12500
0
1500
350
4
285
4.8
5
365
18750
0
7750
350
4
285
4.8
5
370
25000
0
14000
350
4
285
4.8
5
375
31250
0
20250
350
4
285
4.8
5
380
37500
0
26500
350
4
285
4.8
5
385
43750
0
32750
350
4
285
4.8
5
390
50000
0
39000


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