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OPTION STRATEGIES. Market Outlook Bullish Strategy Buy Call Option Risk LimitedReward Unlimited BEP Strike Price + Premium NIFTY CLOSENET PAYOFF 4700-125.

Published byJesse Bankes Modified over 9 years ago

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Presentation on theme: "OPTION STRATEGIES. Market Outlook Bullish Strategy Buy Call Option Risk LimitedReward Unlimited BEP Strike Price + Premium NIFTY CLOSENET PAYOFF 4700-125."— Presentation transcript:

1 OPTION STRATEGIES

2 Market Outlook Bullish Strategy Buy Call Option Risk LimitedReward Unlimited BEP Strike Price + Premium NIFTY CLOSENET PAYOFF 4700-125 4800-125 4900-125 5000-125 51250 520075 5300175 5400275 CMP 4900 Call Strike 5000 Premium 125 Break Even 5125

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4 Market Outlook Bearish Strategy Sell Call Option Risk UnlimitedReward Limited BEP Strike Price + Premium NIFTY CLOSENET PAYOFF 4600125 4700125 4800125 4900125 50250 5100-75 5200-175 5300-275 CMP 4900 Call Strike 4900 Premium 125 Break Even 5025

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6 Market Outlook Bearish Strategy Buy Put Option Risk LimitedReward Unlimited BEP Strike Price - Premium NIFTY CLOSENET PAYOFF 4500175 460075 46750 4700-25 4800-125 4900-125 5000-125 5100-125 CMP 4900 Put Strike 4800 Premium 125 Break Even 4675

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8 Market Outlook Bullish Strategy Sell Put Option Risk UnlimitedReward Limited BEP Strike Price - Premium NIFTY CLOSENET PAYOFF 4500-275 4600-175 4700-75 47750 4900125 5000125 5125125 5200125 CMP 4900 Put Strike 4900 Premium 125 Break Even 4775

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10 Market Outlook Bullish Strategy Buy Stock Buy Put Risk LimitedReward Unlimited BEP Stock Purchase Price + Premium Paid NIFTY CLOSENET PAYOFF 4600-225 4700-225 4800-225 4900-125 50250 510075 5200175 5300275 CMP 4900 Buy Stock 4900 Put Strike 4800 Premium 125 Break Even 5025

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12 Market Outlook Bearish Strategy Short Sell Stock Buy Call Risk LimitedReward Unlimited BEP Short Sell Price - Premium Paid NIFTY CLOSENET PAYOFF 4600175 470075 47750 4800-25 4900-125 5000-225 5100-225 5200-225 CMP 4900 Short Sell Stock 4900 Call Strike 5000 Premium 125 Break Even 4775

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14 Market Outlook Bullish Strategy Buy Call Sell Put Risk UnlimitedReward Unlimited BEP Higher Strike Price + Net Premium Paid NIFTY CLOSENET PAYOFF 4600-225 4700-125 4800-25 4900-25 5000-25 50250 510075 5200175 CMP 4900 Call Strike 5000 Premium 125 Put Strike 4800 Premium 100 Net Premium 25 Break Even 5025

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16 Market Outlook Bearish Strategy Buy Put Sell Call Risk UnlimitedReward Unlimited BEP Higher Strike Price + Net Premium Received NIFTY CLOSENET PAYOFF 4600225 4700125 480025 490025 500025 50250 5100-75 5200-175 CMP 4900 Call Strike 5000 Premium 125 Put Strike 4800 Premium 100 Net Premium 25 Break Even 5025

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18 Market Outlook Neutral to Bullish Strategy Buy Stock Sell Call Risk UnlimitedReward Limited BEP Stock Purchase Price - Call Premium NIFTY CLOSENET PAYOFF 4500-275 4600-175 4700-75 47750 480025 4900125 5000225 5100225 CMP 4900 Stock Price 4900 Call Strike 5000 Premium 125 Break Even 4775

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20 Market Outlook Neutral to Bearish Strategy Short Sell Stock Sell Put Risk UnlimitedReward Limited BEP Short Sell Price + Put Premium NIFTY CLOSENET PAYOFF 4600200 4700200 4800200 4900100 50000 5100-100 5000-200 5100-300 CMP 4900 Short Sell Price 4900 Put Strike 4800 Premium 100 Break Even 5000

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22 Market Outlook Volatile in either direction Reward Unlimited Strategy Buy Call Buy Put Risk Limited BEP UB Strike Price + Initial Premium. LB Strike Price - Initial Premium Nifty Close Net Payoff (Long Call) Net Payoff (Short Call) Net Payoff 4600 -100210 110 4700 -100110 10 4800 -10010 -90 4900 -100-90 -190 5000 0-90 5100 100-90 10 5200 200-90 110 CMP 4900 Buy Call Strike 4900 Premium 100 Buy Put Strike 4900 Premium 90 Breakeven 5090 & 4710

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24 Market Outlook No Volatility Reward Limited Strategy Sell Call Sell Put Risk Unlimited BEP UB Strike Price + Initial Premium. LB Strike Price - Initial Premium Nifty Close Net Payoff (Long Call) Net Payoff (Short Call) Net Payoff 4600 100-210 -110 4700 100-110 -10 4800 100-10 90 4900 10090 190 5000 090 5100 -10090 -10 5200 -20090 -110 CMP 4900 Sell Call Strike 4900 Premium 100 Sell Put Strike 4900 Premium 90 Breakeven 5090 & 4710

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26 Market Outlook Very Volatile in either direction Reward Unlimited Strategy Buy Call Buy Put Risk Limited BEP UB Call Strike + Initial Premium. LB Put Strike - Initial Premium Nifty Close Net Payoff (Long Call) Net Payoff (Short Call) Net Payoff 4500 -125200 75 4600 -125100 -25 4700 -1250 4900 -125-100 -225 5100 -25-100 -125 5200 75-100 -25 5300 175-100 75 CMP 4900 Buy Call Strike 5000 Premium 125 Buy Put Strike 4800 Premium 100 Breakeven 5225& 4575

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28 Market Outlook Very Less Volatility Reward Limited Strategy Sell Call Sell Put Risk Unlimited BEP UB Call Strike + Initial Premium. LB Put Strike - Initial Premium CMP 4900 Sell Call Strike 5000 Premium 125 Sell Put Strike 4800 Premium 100 Breakeven 5225& 4575 Nifty Close Net Payoff (Long Call) Net Payoff (Short Call) Net Payoff 4500 125-200 -75 4600 125-100 25 4700 1250 4900 125100 225 5100 25100 125 5200 -75100 25 5300 -175100 -75

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30 Market Outlook Moderately BullishReward Limited Strategy Buy ITM Call Sell OTM CallRisk Limited BEP Strike price of Long Call + Net premium paid Nifty Close Net Payoff (Long Call) Net Payoff (Short Call) Net Payoff 4700-22575-150 4800-22575-150 4950-75750 510075 150 520017575250 530027575350 5400375-25350 CMP 4900 Buy Call Strike 4800 Premium 225 Sell Call Strike 5300 Premium 75 Breakeven 4950

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32 Market Outlook Moderately Bullish Reward Limited Strategy Sell OTM Put Buy further OTM Put Risk Limited BEP Strike price of Short Put - Net premium received Nifty Close Net Payoff (Short Put) Net Payoff (Long Put) Net Payoff 4500-17575-100 4600-75-25-100 470025-250 4800125-25100 4900125-25100 5000125-25100 5100125-25100 CMP 4900 Sell Put Strike 4800 Premium 125 Buy Put Strike 4600 Premium 25 Breakeven 4700

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34 Market Outlook Mildly Bearish Reward Limited Strategy Buy OTM Call Sell ITM Call Risk Limited BEP Lower Strike + Net premium received Nifty Close Net Payoff (Short Call) Net Payoff (Long Call) Net Payoff 4600125-7550 4700125-7550 4800125-7550 4850 75-75 0 490025-75-50 5000-75 -150 5100-17525-150 CMP 4900 Sell Call Strike 4800 Premium 125 Buy Call Strike 5000 Premium 75 Breakeven 4850

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36 Market Outlook Moderately BearishReward Limited Strategy Buy ITM Put Sell OTM Put Risk Limited BEP Strike Price of Long Put - Net Premium paid Nifty Close Net Payoff (Long Put) Net Payoff (Short Put) Net Payoff 4700175-25150 480075 150 4900-257550 4950 -7575 0 5000-12575-50 5100-12575-50 5200-12575-50 CMP 4900 Buy Put Strike 5000 Premium 125 Sell Put Strike 4800 Premium 75 Breakeven 4950

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