Nifty June future current price 10686 (Create the below strategy when this goes to 10695-10705)
Buy 10700 call 1 lot @ 128
Buy 10700 put 1 lot @ 140
sell 11000 call 1 lot @ 28
sell 10400 put 1 lot @ 55
Minimum capital required for above 4 trade combination 1 lot is 1 lakh , if you have 5 lakhs you can create 5 lots trade.
Generally I restrict people in taking number of lots , this one I wont.
Risk Calculations :
Our buy cost is premium 268 , our sell cost premium gain is 83 ,
Net risk is 185 points (debit) i.e If Nifty expiry happens at 10600 on june 28
Break-even points : If nifty goes up or down 200 points we are break-even on our trade
i.e if nifty goes to 10900 , or 10500 we will start making profit
Maximum reward is 103 points if Nifty goes to 10350 or it goes to 11030 , 100 points is 7500 profit per lot for 1 lakh investment.
So Tigers tomorrow if market opens and if you find NIFTY JUNE around 10695/705 level , take this .
Hassel free , Let it go in any direction no need to monitor every 5 min .
Please note :
Consult your financial adviser before investing , options are risk , Risk of capital loss involved
the moment it goes in our zone of 10695/10705 , Once it goes there , It's time to kill. Sit still.....
we are nicely eating theta on 10400 put and 11000 call ,
So let it be as it is .
We will look at it next Friday , in between if it reaches the target zone , i will update it
Currently we are around 15 points in Red i.e loss
Book losses , Sometime market traps and this is trade which we are trapped.
Book losses and get out , Dont allow losses to grow big.