LT BUTTERFLY STRATEGY FOR OCTOBER'2015

BUY 1 LOT LT 1400 CALL @ 101

 BUY 1 LOT LT 1500 CALL @ 43

SELL 2 LOTS LT 1450 CALL @69

Total risk=750

Upper break given point=1550

Lower break given point=1350

PAY OFF TABLE:

DLF STRANGLE STRATEGY

BUY DLF 140 CALL @3.3

BUY DLF 110 PUT @   2.7

COST=6

TOTAL RISK  = 12000

RETURN = UNLIMITED

UPPER BREAK GIVEN POINT=146

LOWER BREAK GIVEN POINT=104

Pay off table:

What Is Options Settlement In The First Place?

Settlement in options trading is the process where the terms of an options contract are resolved between the holder and the writer. In options trading, the holder is the one who owns an options contract and a writer is the person who sold the holder that options contract. Settlement  in call options contracts involve the holders of the options contracts paying the writers for the underlying asset at the strike price. Settlement in put options contracts involves the holder of the options contract selling the underlying asset to the writer at the strike price. After settlement, the options contract will cease to exist and all obligations between the holder and the writer would be resolved.

Settlement can happen under 2 circumstances; Voluntary exercise by the holder or automatic exercise upon expiration.
The holder of an American Style Option could choose to voluntarily exercise their options any time prior to expiration. Once that happens, settlement takes place between the holder and the writer and the options contract is resolved.