Saturday, 2 March 2013

IDFC STRANGLE STRATEGY

LEG1: BUY IDFC 160 CALL @1.60
LEG2: BUY IDFC 130 PUT @1
COST =2.60        
Total risk=5330
Return=unlimited
Pay off table:

Strike Price
Call Option Price
Strike Price
Closing price
Lot size
Return from call
return from put
Payoff
160
1.6
130
120
2000
0
20000
14670
160
1.6
130
125
2000
0
10000
4670
160
1.6
130
130
2000
0
0
-5330
160
1.6
130
135
2000
0
0
-5330
160
1.6
130
140
2000
0
0
-5330
160
1.6
130
145
2000
0
0
-5330
160
1.6
130
150
2000
0
0
-5330
160
1.6
130
155
2000
0
0
-5330
160
1.6
130
160
2000
0
0
-5330
160
1.6
130
165
2000
10000
0
4670
160
1.6
130
170
2000
20000
0
14670
160
1.6
130
175
2000
30000
0
24670
160
1.6
130
180
2000
40000
0
34670
160
1.6
130
185
2000
50000
0
44670
160
1.6
130
190
2000
60000
0
54670
160
1.6
130
195
2000
70000
0
64670
160
1.6
130
200
2000
80000
0
74670
160
1.6
130
205
2000
90000
0
84670
160
1.6
130
210
2000
100000
0
94670

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