Tuesday, 29 September 2015

DLF STRANGLE STRATEGY

BUY DLF 140 CALL @3.3
BUY DLF 110 PUT @   2.7
COST=6
TOTAL RISK  = 12000
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=146
LOWER BREAK GIVEN POINT=104
Pay off table:

Strike Price
Call Option Price
Strike Price
Call Option Price
Closing price
Return from call
return from put
Payoff
140
3.3
110
2.7
80
0
60000
48000
140
3.3
110
2.7
90
0
40000
28000
140
3.3
110
2.7
100
0
20000
8000
140
3.3
110
2.7
110
0
0
-12000
140
3.3
110
2.7
120
0
0
-12000
140
3.3
110
2.7
130
0
0
-12000
140
3.3
110
2.7
140
0
0
-12000
140
3.3
110
2.7
150
20000
0
8000
140
3.3
110
2.7
160
40000
0
28000
140
3.3
110
2.7
170
60000
0
48000
140
3.3
110
2.7
180
80000
0
68000
140
3.3
110
2.7
190
100000
0
88000
140
3.3
110
2.7
200
120000
0
108000
140
3.3
110
2.7
210
140000
0
128000
140
3.3
110
2.7
220
160000
0
148000
140
3.3
110
2.7
230
180000
0
168000
140
3.3
110
2.7
240
200000
0
188000

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