BOOK PROFIT IN NIFTY STRANGLE

Nifty Strangle strategy rocks !!!! Book profit ...Book nifty 5400 call @ 200
Total cost Rs 140.

NIFTY OPTION LONG STRANGLE STRATEGY

OPTION CALL PUT STRATEGY

                      

The long strangle, also known as buy strangle or simply "strangle", is a neutral strategy in options trading that involve the simultaneous buying of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying stock and expiration date.

NIFTY STRANGLE STRATEGY

LEG1: BUY NIFTY 5400 CALL @ 70

LEG2: BUY NIFTY 5000 PUT @ 70

COST =140          

 RISK PER LOT = 7000

RETURN = UNLIMITED

Pay off table

Closing price	Lot size	trading cost	Total Investment	Return from call	return from put	Payoff
4800	50		7000	0	10000	3000
4825	50		7000	0	8750	1750
4850	50		7000	0	7500	500
4875	50		7000	0	6250	-750
4900	50		7000	0	5000	-2000
4925	50		7000	0	3750	-3250
4950	50		7000	0	2500	-4500
4975	50		7000	0	1250	-5750
5000	50		7000	0	0	-7000
5025	50		7000	1250	0	-5750
5050	50		7000	2500	0	-4500
5075	50		7000	3750	0	-3250
5100	50		7000	5000	0	-2000
5125	50		7000	6250	0	-750
5150	50		7000	7500	0	500
5175	50		7000	8750	0	1750
5200	50		7000	10000	0	3000
5225	50		7000	11250	0	4250
5250	50		7000	12500	0	5500
5275	50		7000	13750	0	6750
5300	50		7000	15000	0	8000
5325	50		7000	16250	0	9250
5350	50		7000	17500	0	10500
5375	50		7000	18750	0	11750
5400	50		7000	20000	0	13000
5425	50		7000	21250	0	14250
5450	50		7000	22500	0	15500
5475	50		7000	23750	0	16750
5500	50		7000	25000	0	18000
5525	50		7000	26250	0	19250
5550	50		7000	27500	0	20500
5575	50		7000	28750	0	21750
5600	50		7000	30000	0	23000