ICICIBANK STRANGLE STRATEGY FOR APRIL 2018

"BUY 1 LOT ICICIBANK 280 CALL @ 5 AND 1  LOT ICICIBANK 240 PUT @ 5 "

LOT SIZE =  1250
CURRENT CALL OPTION PRICE = 4.8
CURRENT PUT OPTION PRICE = 5.2
NO. OF CONTRACT = 2
PROFIT/LOSS = 27500 
PAY OFF TABLE - 

Strike Price	Call Option Price	Strike Price	Put Option Price	Closing price	Return from call	return from put	Payoff
280	5	240	5	150	0	247500	220000
280	5	240	5	160	0	220000	192500
280	5	240	5	170	0	192500	165000
280	5	240	5	180	0	165000	137500
280	5	240	5	190	0	137500	110000
280	5	240	5	200	0	110000	82500
280	5	240	5	210	0	82500	55000
280	5	240	5	220	0	55000	27500
280	5	240	5	230	0	27500	0
280	5	240	5	240	0	0	-27500
280	5	240	5	250	0	0	-27500
280	5	240	5	260	0	0	-27500
280	5	240	5	270	0	0	-27500
280	5	240	5	280	0	0	-27500
280	5	240	5	290	27500	0	0
280	5	240	5	300	55000	0	27500
280	5	240	5	310	82500	0	55000
280	5	240	5	320	110000	0	82500
280	5	240	5	330	137500	0	110000
280	5	240	5	340	165000	0	137500
280	5	240	5	350	192500	0	165000
280	5	240	5	360	220000	0	192500
280	5	240	5	370	247500	0	220000

  

RELCAPITAL STRANGLE STRATEGY ROCKS

50 % RETURN IN YOUR INVESTMENT 

RELCAPITAL STRATEGY GIVEN ON 23 FEB

2018 POST

"RELCAPITAL 440 PUT BOOKED PROFIT @

44 BUY  GIVEN  @ 12"

"RELCAPITAL 480 CALL CLOSED AT 0.70

BUY GIVEN @ 17"

PROFIT FROM PUT= 24000

LOSS FROM CALL= 12187

11813 PROFIT IN 21750 INVESTMENT 

FOR LIVE MARKET STRATEGY & OPTION CALLS FILL UP THE DETAILS HERE>>>>> 

RELCAPITAL STRANGLE STRATEGY BOOK PROFIT

"RELCAPITAL 440 PUT  BOOK PROFIT NEAR 44 

BUY GIVEN @ 12"

Iron Condor Vs Iron Butterfly? Which Is better?

These are both short Vega trades, meaning that they benefit from volatility lowering, however, the structure is different and the pros and cons of each are different.

The Iron Condor is perhaps the most popular option spread trade. The structure is selling a call vertical and a put vertical out of the money, usually by several strikes. This is what you might call a “strangle”.

Which is Better?

The Iron Condor would be better than the more narrow strike Iron Butterfly. The downside of using an Iron Condor is that when it does go against you, it is more difficult to repair and/or you can lose more money because you took in less premium, by selling options that were further from the money.

Overall, though, it does have a good probability of profit greater than that of the Iron Butterfly.

The Iron Butterfly is also a trade that benefits from lowering volatility. It is structured by selling an at-the-money call vertical and an at-the-money put vertical with varying long wing widths.

Risk-To-Reward

The Iron Butterfly has more narrow structures than the Iron Condor, however, it has a better risk-to-reward, because your return can be so much higher on-the-money at risk than with the Iron Condor.

This is because you received more premium selling the at-the-money options. Because it has this greater risk/reward, the Iron Butterfly can be put on in a wider range of markets, both lower volatility and higher volatility.

Volatility

Even though it is short volatility, it still performs well, even in lower volatility markets because of the risk reward.

Of course, both of these trades, require that the price stay inside of a range for the trade to be profitable. The Iron Condor gives you more room and the Iron Butterfly gives you less room for the price to roam. However, overall in most markets, I preferred the Iron Butterfly, because of the increase risk reward.