BANKBARODA OPTION STRATEGY FOR OCTOBER 2021

OPTION STRATEGY BUY BANKBARODA 100 CALL @ 1.6 AND 80 PUT @ 0.7 

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Strike Price	Call Option Price	Strike Price	Put Option Price	Strike rate	Closing price	Payoff
100	1.6	80	0.7	10	50	324090
100	1.6	80	0.7	10	60	207090
100	1.6	80	0.7	10	70	90090
100	1.6	80	0.7	10	80	-26910
100	1.6	80	0.7	10	90	-26910
100	1.6	80	0.7	10	100	-26910
100	1.6	80	0.7	10	110	90090
100	1.6	80	0.7	10	120	207090
100	1.6	80	0.7	10	130	324090

 

INDIACEM DOWN BY 7% OPTION STRATEGY ROCKSSS

STRATEGY GIVEN IN TODAY'S POST TO CHECK VISIT http://optioncallputtradingtips.blogspot.com/2021/10/indiacem-option-strategy-for-october.html

INDIACEM 200 PUT BOOK PROFIT NEAR 6.5 BUY GIVEN @ 3.2 PROFIT OF 9570

INDIACEM 240 CALL BOOK NEAR 3 BUY GIVEN @ 3.3 LOSS OF 870

NET PROFIT 8700

INVESTMENT 18850

RISK :: RETURN

18850 :: 27550

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INDIACEM OPTION STRATEGY BOOK PROFIT

OPTION STRATEGY BOOK PROFIT IN INDIACEM 200 PUT NEAR 6.5

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INDIACEM OPTION STRATEGY FOR OCTOBER 2021

INDIACEM BUY 1 LOT 240 CALL @ 3.3 AND INDIACEM 200 PUT @ 3.2 

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Strike Price	Call Option Price	Strike Price	Put Option Price	Strike rate	Closing price	Payoff
240	3.3	200	3.2	10	150	126150
240	3.3	200	3.2	10	160	97150
240	3.3	200	3.2	10	170	68150
240	3.3	200	3.2	10	180	39150
240	3.3	200	3.2	10	190	10150
240	3.3	200	3.2	10	200	-18850
240	3.3	200	3.2	10	210	-18850
240	3.3	200	3.2	10	220	-18850
240	3.3	200	3.2	10	230	-18850
240	3.3	200	3.2	10	240	-18850
240	3.3	200	3.2	10	250	10150
240	3.3	200	3.2	10	260	39150
240	3.3	200	3.2	10	270	68150
240	3.3	200	3.2	10	280	97150
240	3.3	200	3.2	10	290	126150

What is the Iron Condor?

 The Iron Condor is a strategy used for trading in options. It combines two other tactics, a bull put spread and a bear call spread, meaning the investor holds a total of four positions in the same financial asset, such as a company stock. The name of the Iron Condor comes from the shape of a graph showing the effect of a change in the asset's market price on the investor's overall profit or loss.

The basis of the Iron Condor is options trading. This involves an investor paying an agreed fee up front that buys him the right to buy or sell an agreed quantity of a financial asset at an agreed price on a set future date, regardless of what the market price for the asset is on that date. The investor will hope to correctly guess the future price movement, and then buy or sell the asset as required to profit from the difference between the agreed price and the prevailing market price. As the deal is an option, the investor does not have to go through with the agreed transaction if the market price has gone against him. This is a significant benefit, usually reflected in the initial fee the investor pays to set up the deal.

Some investors use more sophisticated tactics with options, such as a spread. This involves setting up two options deals that cover the same asset, but contrast with one another. For example, an investor might set up an option to buy an asset at a low price, while also selling another trader the option to buy the same asset at a higher price. Exactly if and how the investor goes on to make or lose money depends on the asset's price movement. The key is that the money he paid to set up one deal will be different than the money he received in setting up the other deal. This is because one option is more likely to turn out to be profitable than the other.

There are a total of four possible ways to combine two options in a spread strategy. A spread can be described as either a call spread or put spread, depending on whether the investor's own option to buy carries a higher price than the option to buy that he offered to the other trader. A spread can also be described as either a bull spread or a bear spread, depending on whether the investor profits from the market price of the asset rising or falling. This thus creates the bull call spread, the bull put spread, the bear call spread and the bear put spread.

The Iron Condor combines two of these spreads — the bull put spread and the bear call spread. This means the investor sets up four options, all for the same asset. The name comes from the fact that a graph showing the trader's potential profit or loss starts out flat as the asset price rises, then increases through to a profitable level before flattening out again, and decreases back to a loss-making level before again flattening out. The name is derived from the way this shape resembles a large winged bird such as the Iron Condor.

What are Straddles and Strangles?

A call option is the right to buy a given asset at a fixed price on or before a specific date. A put option is the right to sell a given asset at a fixed price on or before a specific date. Calls increase in value when the price of the underlying asset goes up; puts increase in value when the price of the underlying asset goes down. Straddles and strangles are options trading strategies that combine both puts and calls to create positions that do not depend on the direction of the market movement for their profitability.

A long straddle position is constructed by purchasing both a put and a call at an exercise price at or near the current price of the underlying asset. To become profitable, the underlying must have a change in price greater than the total cost of the straddle, and the price change must occur prior to expiry. If it doesn't, the straddle expires worthless. Since a straddle can never be worth less than zero, long straddles have limited risk and unlimited profit potential.

A short straddle position is constructed by selling both a put and a call at an exercise price at or near the current price of the underlying asset. Because the options are sold rather than bought, the position is initially as profitable as it can be. To remain profitable at expiry, the underlying price must move less than the combined price obtained by selling the straddle. Short straddles carry unpredictably large risks and limited profit potential.

A long strangle position is constructed by purchasing both a put and a call at exercise prices some distance from the current price of the underlying asset. In terms of profit and loss, it acts very much like a long straddle. The advantage over straddles is that it costs less, and therefore has a lower maximum possible loss. The disadvantage is that it requires an even larger move to become profitable.

A short straddle position is constructed by selling both a put and a call at an exercise price some distance from the current exercise of the underlying asset. It has the same limited-gain, unlimited-loss characteristics as a short straddle, but it requires a greater price change for the position to lose money.

As a general rule, traders prefer to sell straddles and buy strangles when the expiration date is far in the future; conversely, they prefer to buy straddles and sell strangles when expiration is in the near future.