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

  

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