Tuesday, 24 February 2015

STRANGLE IN RCOM WITH NEGATIVE BIAS

RCOM OPTION STRATEGY  
BUY RCOM MAR 65 PUT @ 2.4
BUY RCOM MAR 80 CALL @ 1.3
COST=3.7
TOTAL RISK  = 7400
RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=83.7

LOWER BREAK GIVEN POINT=61.3

Pay off table:

Strike Price
Call Option Price
Strike Price
Call Option Price
Strike rate
Closing price
Return from call
return from put
Payoff
80
1.3
65
2.4
5
40
0
50000
42600
80
1.3
65
2.4
5
45
0
40000
32600
80
1.3
65
2.4
5
50
0
30000
22600
80
1.3
65
2.4
5
55
0
20000
12600
80
1.3
65
2.4
5
60
0
10000
2600
80
1.3
65
2.4
5
65
0
0
-7400
80
1.3
65
2.4
5
70
0
0
-7400
80
1.3
65
2.4
5
75
0
0
-7400
80
1.3
65
2.4
5
80
0
0
-7400
80
1.3
65
2.4
5
85
10000
0
2600
80
1.3
65
2.4
5
90
20000
0
12600
80
1.3
65
2.4
5
95
30000
0
22600
80
1.3
65
2.4
5
100
40000
0
32600
80
1.3
65
2.4
5
105
50000
0
42600
80
1.3
65
2.4
5
110
60000
0
52600
80
1.3
65
2.4
5
115
70000
0
62600
80
1.3
65
2.4
5
120
80000
0
72600
80
1.3
65
2.4
5
125
90000
0
82600
80
1.3
65
2.4
5
130
100000
0
92600
80
1.3
65
2.4
5
135
110000
0
102600
80
1.3
65
2.4
5
140
120000
0
112600
80
1.3
65
2.4
5
145
130000
0
122600
80
1.3
65
2.4
5
150
140000
0
132600
80
1.3
65
2.4
5
155
150000
0
142600


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