Options Strategy Breakdown – For Educational Purpose Only________________________________________
📈 Options Strategy Breakdown – For Educational Purpose Only
🧠 Learn to Structure a Bull Call Spread Strategically
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🔹 Stock Name: BSE
🔹 Spot Price: ₹2546
🔹 Lot Size: 375
🔹 Number of Lots: 1
🔹 Expiry Date: 31-July-2025
🕒 DTE (Days to Expiry): 16 Days
💡 Strategy Type: Bull Call Spread – Limited Risk | Limited Reward Option Structure
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📘 Strategy Construction (Illustrative Example):
1️⃣ Buy Call Option – Strike: ₹2500 | Premium Paid: ₹125
2️⃣ Sell Call Option – Strike: ₹2600 | Premium Received: ₹76
🧮 Net Premium Outflow: ₹49
(₹125 - ₹76 = ₹49 * 375 = ₹18,375)
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📊 Payoff Metrics (Illustrative & Hypothetical):
• 🔹 Breakeven Point: ₹2549.00
• 📈 Maximum Profit: ₹19,125 (When Spot ≥ ₹2600)
• ⚠️ Maximum Loss (Capital Deployed): ₹18,375 (if Spot ≤ ₹2500)
• 🔄 Real-Time PnL: Subject to market movement
• 🎯 Suggested Profit Booking Threshold: ₹18,375 (illustrative target)
• 🛑 Reversal Exit Point (Invalidation): Spot < ₹2487.75 (Support Violation)
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📌 Why Learn This Strategy?
The Bull Call Spread is a risk-defined options strategy designed for moderately bullish views. It reduces premium cost compared to naked options and has a clearly capped loss and reward, making it suitable for learning proper risk management in derivatives trading.
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🔍 Key Educational Takeaways:
• Helps manage premium exposure in trending markets
• Builds awareness of breakeven levels and invalidation points
• Encourages use of defined-risk structures over naked positions
• Promotes discipline and technical level-based exits
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⚠️ Educational Disclaimer:
📢 This post is intended purely for educational and informational purposes only and does not constitute investment advice, recommendation, or solicitation to trade.
I am not a SEBI-registered investment advisor. All data shared above is illustrative and should not be considered as buy/sell advice.
Trading in derivatives involves risk. Please consult a SEBI-registered advisor before taking any financial decisions.
📘 Past performance or setup structure does not guarantee future results.
Always do your own research and use strict risk management.
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