TATAMOTORS STRANGLE STRATEGY

BUY TATAMOTORS 360 PUT @ 3.25

BUY TATAMOTORS 410 CALL @ 2.90

COST =6.15   

RISK PER LOT = 6150

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=416.15

LOWER BREAK GIVEN POINT=353.85

Pay off table:....

Strike Price	Call Option Price	Strike Price	Call Option Price	Closing price	Return from call	return from put	Payoff
410	2.9	360	3.25	340	0	20000	13850
410	2.9	360	3.25	345	0	15000	8850
410	2.9	360	3.25	350	0	10000	3850
410	2.9	360	3.25	355	0	5000	-1150
410	2.9	360	3.25	360	0	0	-6150
410	2.9	360	3.25	365	0	0	-6150
410	2.9	360	3.25	370	0	0	-6150
410	2.9	360	3.25	375	0	0	-6150
410	2.9	360	3.25	380	0	0	-6150
410	2.9	360	3.25	385	0	0	-6150
410	2.9	360	3.25	390	0	0	-6150
410	2.9	360	3.25	395	0	0	-6150
410	2.9	360	3.25	400	0	0	-6150
410	2.9	360	3.25	405	0	0	-6150
410	2.9	360	3.25	410	0	0	-6150
410	2.9	360	3.25	415	5000	0	-1150
410	2.9	360	3.25	420	10000	0	3850
410	2.9	360	3.25	425	15000	0	8850
410	2.9	360	3.25	430	20000	0	13850
410	2.9	360	3.25	435	25000	0	18850
410	2.9	360	3.25	440	30000	0	23850
410	2.9	360	3.25	445	35000	0	28850
410	2.9	360	3.25	450	40000	0	33850