CHECK THE BLOG DATED 15TH JUNE SATURDAY

'Strangle'

An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset.

This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be.

 

 THIS STRATEGY WAS GIVEN ON 15TH JUNE 2013

10,000 investment

would appreciate to 50,000/-

in 10 days

if you feel for 10,000/- investment 

40,000/- returns are good

then 

BUY NIFTY 6100 CALL ON 17TH JUNE2013

@ 7-10

IF YOU FEEL YOUR 10,000/- WILL BE LOST

YOU WANT INSURANCE

THEN BUY ALSO 5500 PUT

@ 8

INVEST 10,000/-

IF NIFTY GOES DOWN TO 5500 OR 5600

U WILL STILL MAKE 40,000/- - 50,000/- 

 

 

NOW CHECK THE RESULTS FROM 17TH  TO 20TH JUNE

 

6100 CALL OPEN AT 7.80

20TH JUNE CLOSED AT 1

10000 INVESTMENT NOW 1000 LEFT

 

Date	Open	High	Low	Close	Settle Price	Contracts	Turnover (in lacs)	OI
20-Jun-2013	1.80	2.45	0.95	1.00	1.00	155505	474375.40	5566900
19-Jun-2013	3.35	4.70	2.70	4.20	4.20	149313	455649.64	6641700
18-Jun-2013	5.10	6.00	3.25	3.60	3.60	142786	435829.22	6530850
17-Jun-2013	7.80	8.15	4.30	6.50	6.50	152797	466489.35	6454700
14-Jun-2013	6.40	9.10	5.80	7.75	7.75	134515	410766.76	5928900

 

5500 PUT OPEN AT 7 

MADE A HIGH OF 16.85 ON 20TH JUNE

20TH JUNE CLOSED AT 15.30 

10000 INVESTMENT NOW 22000

 

Date	Open	High	Low	Close	Settle Price	Contracts	Turnover (in lacs)	OI
20-Jun-2013	8.20	16.85	6.15	15.30	15.30	329338	907591.35	6006200
19-Jun-2013	4.10	5.45	2.80	3.45	3.45	84602	232829.09	5836400
18-Jun-2013	3.30	5.05	2.60	4.10	4.10	72757	200226.86	5575250
17-Jun-2013	6.95	9.85	3.45	4.00	4.00	123196	339187.22	5652550

LETS WAIT & SEE HOW MUCH BOTH CALL & PUT WILL GO...........TILL EXPIRY

SHOULD WE CHANGE THE STRATEGY ACCORDING TO MARKET DIRECTION, THEN WE WILL DO ANOTHER STRATEGY