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Trading strategies involving options and futures


trading strategies involving options and futures

at a higher strike price. Here you must understand that buying a Put is the opposite of buying a Call. Reward: Reward is Unlimited, breakeven: (Strike Price Premium let us now understand through this example how to fetch the data from the website and how to determine the Payoff schedule for Long Call Strategy. It is referred to as a covered call because in the event that a stock rockets higher in price, your short call is covered by the long stock position. A balanced butterfly spread will have the same wing widths. The covered calls P L graph looks a lot like a short naked puts P L graph. The long out-of-the-money call protects against non fifo forex brokers unlimited downside. Short Strangle - If market is within or near (A-B) range and, though active, is quieting down.

May be traded into from initial long call or short put position to create a stronger bullish position. Long Put Strategy Input Strategy: Buy Put Option Trading Strategy Current Nifty Index 7655.1 Put Option Strike Price (Rs.) 7600 Premium (Rs.) 50 Break Even Point (Rs.) (Strike price premium) 7550 Long Put Strategy Output The Payoff Schedule of this Option Trading Strategy On expiry Nifty Closes. Investors might use this strategy when they have a short-term position in the stock and a neutral opinion on its direction. In instrument type Harrison selects index options, in symbol he selects nifty, the expiry date is 24th September, option type will be call, and Strike price is 7600.

#5: Long Straddle Options Trading Strategy The long straddle strategy is also known as buy straddle or simply straddle. Upper Breakeven Point Strike Price of Short Call Net Premium Received2. . We then have calculated the g.k for competitive exam pdf Break-even point. Break-even point is nothing but the price that the stock must reach for the option buyers to avoid any loss if they exercise the option. It is common to have the same width for both spreads. Youre in good company. This is how a bull call spread is constructed. Short Put Strategy Input Strategy: Sell Put Options Trading Strategy Current Nifty Index 7703.6 Put Option Strike Price (Rs.) 7600 Premium (Rs.) 50 Break Even Point (Rs.) (Strike price premium) 7550 Short Put Strategy Output The Payoff Schedule of this Options Trading Strategy On expiry. One of the most common option spreads, seldom done more than 1:3 (two excess shorts) because of downside risk.


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