Tuesday, 11 February 2014

TATASTEEL STRANGLE STRATEGY

Buy Tatasteel 420 call @   3
Buy Tatasteel 360 put @  3.5
COST =6.5
RISK PER LOT = 6500
RETURN = UNLIMITED
UPPER BREAK GIVEN POINT=426.5
LOWER BREAK GIVEN POINT=353.5
Pay off table:...


Strike Price
Call Option Price
Strike Price
Call Option Price
Closing price
Total Investment
Return from call
return from put
Payoff
420
3
360
3.5
310
6500
0
50000
43500
420
3
360
3.5
320
6500
0
40000
33500
420
3
360
3.5
330
6500
0
30000
23500
420
3
360
3.5
340
6500
0
20000
13500
420
3
360
3.5
350
6500
0
10000
3500
420
3
360
3.5
360
6500
0
0
-6500
420
3
360
3.5
370
6500
0
0
-6500
420
3
360
3.5
380
6500
0
0
-6500
420
3
360
3.5
390
6500
0
0
-6500
420
3
360
3.5
400
6500
0
0
-6500
420
3
360
3.5
410
6500
0
0
-6500
420
3
360
3.5
420
6500
0
0
-6500
420
3
360
3.5
430
6500
10000
0
3500
420
3
360
3.5
440
6500
20000
0
13500
420
3
360
3.5
450
6500
30000
0
23500
420
3
360
3.5
460
6500
40000
0
33500
420
3
360
3.5
470
6500
50000
0
43500
420
3
360
3.5
480
6500
60000
0
53500
420
3
360
3.5
490
6500
70000
0
63500

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