Friday, 9 March 2012

Friday, 2 March 2012

Nifty Short Strangle Strategy


Nifty has been in narrow range for some time. We expect it to continue doing so till budget session and forthcoming election outcome.
Nifty short strangle is our pick for coming week
Sell Nifty 5200 put @ 85
Sell Nifty 5600 call @ 67
Total Return  =(85+67)*50=7600
Lower Break Even Point=5048
Higher Break even Point=5752
KEEP SL Of 50 points
Time Frame =7-10 Days
  

Friday, 17 February 2012

BOOK PROFIT IN NIFTY STRANGLE

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

Friday, 3 February 2012

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