Thursday, 6 August 2015

TATAMOTORS STRANGLE STRATEGY FOR AUGUST 2015

BUY 1 LOT TATAMOTORS 350 PUT @ 4.7
BUY 1 LOT TATAMOTORS  410 CALL @ 4.9
COST=9.6
TOTAL RISK  = 4800
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=414.9
LOWER BREAK GIVEN POINT=346.3
Pay off table:

Strike Price
Call Option Price
Strike Price
Call Option Price
Closing price
Return from call
return from put
Payoff
410
4.9
350
4.7
340
0
5000
200
410
4.9
350
4.7
350
0
0
-4800
410
4.9
350
4.7
360
0
0
-4800
410
4.9
350
4.7
370
0
0
-4800
410
4.9
350
4.7
380
0
0
-4800
410
4.9
350
4.7
390
0
0
-4800
410
4.9
350
4.7
400
0
0
-4800
410
4.9
350
4.7
410
0
0
-4800
410
4.9
350
4.7
420
5000
0
200
410
4.9
350
4.7
430
10000
0
5200
410
4.9
350
4.7
440
15000
0
10200
410
4.9
350
4.7
450
20000
0
15200
410
4.9
350
4.7
460
25000
0
20200
410
4.9
350
4.7
470
30000
0
25200
410
4.9
350
4.7
480
35000
0
30200
410
4.9
350
4.7
490
40000
0
35200
410
4.9
350
4.7
500
45000
0
40200
410
4.9
350
4.7
510
50000
0
45200
410
4.9
350
4.7
520
55000
0
50200


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