IFCI BULL CALL SPREAD OPTION STRATEGY

OPTION CALL PUT STRATEGY

Here we present you Bull call spread option trading strategy which is explained in detail in our earlier post http://optioncallputtradingtips.blogspot.in/ This is very short term strategy with current expiry outlook

IFCI BULL CALL SPREAD STRATEGY

LEG1: BUY IFCI 35 MAY CALL OPTION @.80

LEG2: SELL IFCI 37.5 MAY CALL OPTION @ .20

COST =4800       

 RISK PER LOT = (.80-.20)*8000=4800

MAX RETURN 15200

Pay off table

Strike Price	Call Option Price	Strike Price	Call Option Price	Strike rate	Closing price	Lot size	Payoff
35	0.8	37.5	0.2	0.25	33.5	8000	-4800
35	0.8	37.5	0.2	0.25	33.75	8000	-4800
35	0.8	37.5	0.2	0.25	34	8000	-4800
35	0.8	37.5	0.2	0.25	34.25	8000	-4800
35	0.8	37.5	0.2	0.25	34.5	8000	-4800
35	0.8	37.5	0.2	0.25	34.75	8000	-4800
35	0.8	37.5	0.2	0.25	35	8000	-4800
35	0.8	37.5	0.2	0.25	35.25	8000	-2800
35	0.8	37.5	0.2	0.25	35.5	8000	-800
35	0.8	37.5	0.2	0.25	35.75	8000	1200
35	0.8	37.5	0.2	0.25	36	8000	3200
35	0.8	37.5	0.2	0.25	36.25	8000	5200
35	0.8	37.5	0.2	0.25	36.5	8000	7200
35	0.8	37.5	0.2	0.25	36.75	8000	9200
35	0.8	37.5	0.2	0.25	37	8000	11200
35	0.8	37.5	0.2	0.25	37.25	8000	13200
35	0.8	37.5	0.2	0.25	37.5	8000	15200
35	0.8	37.5	0.2	0.25	37.75	8000	15200
35	0.8	37.5	0.2	0.25	38	8000	15200
35	0.8	37.5	0.2	0.25	38.25	8000	15200
35	0.8	37.5	0.2	0.25	38.5	8000	15200
35	0.8	37.5	0.2	0.25	38.75	8000	15200
35	0.8	37.5	0.2	0.25	39	8000	15200
35	0.8	37.5	0.2	0.25	39.25	8000	15200
35	0.8	37.5	0.2	0.25	39.5	8000	15200
35	0.8	37.5	0.2	0.25	39.75	8000	15200

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