Friday, 15 November 2013

IBREALEST STRANGLE STRATEGY

Buy IBREALEST 75 call @.70
Buy IBREALEST 65 put @.90
COST =1.6   
RISK PER LOT = 6400
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=76.6
LOWER BREAK GIVEN POINT=63.4
Pay off table:....


Strike Price
Call Option Price
Call Option Price
Closing price
Total Investment
Return from call
return from put
Payoff
75
0.7
0.9
55
6400
0
40000
33600
75
0.7
0.9
57
6400
0
32000
25600
75
0.7
0.9
59
6400
0
24000
17600
75
0.7
0.9
61
6400
0
16000
9600
75
0.7
0.9
63
6400
0
8000
1600
75
0.7
0.9
65
6400
0
0
-6400
75
0.7
0.9
67
6400
0
0
-6400
75
0.7
0.9
69
6400
0
0
-6400
75
0.7
0.9
71
6400
0
0
-6400
75
0.7
0.9
73
6400
0
0
-6400
75
0.7
0.9
75
6400
0
0
-6400
75
0.7
0.9
77
6400
8000
0
1600
75
0.7
0.9
79
6400
16000
0
9600
75
0.7
0.9
81
6400
24000
0
17600
75
0.7
0.9
83
6400
32000
0
25600
75
0.7
0.9
85
6400
40000
0
33600
75
0.7
0.9
87
6400
48000
0
41600

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