Strangle Strategy

Strangle HUL Contracts HUL July Call @260 with premium @6 260 HUL July Put @220 with premium @5 220 Total Cost 11 HUL Closing Profit on Call Profit on Put Initial Cost Net Profit Activation 200 0 20 11 9 Put 209 0 11 11 0 Put 210 0 10 11 -1... More

Strangle HUL Contracts HUL July Call @260 with premium @6 260 HUL July Put @220 with premium @5 220 Total Cost 11 HUL Closing Profit on Call Profit on Put Initial Cost Net Profit Activation 200 0 20 11 9 Put 209 0 11 11 0 Put 210 0 10 11 -1 Put 220 0 0 11 -11 None 230 0 0 11 -11 None 250 0 0 11 -11 None 260 0 0 11 -11 None 270 10 0 11 -1 Call 271 11 0 11 0 Call 280 20 0 11 9 Call Here Post Lower activation, i.e. Put the Cost has to be covered So, Profit zone starts post 209 Again Post Higher activation, i.e. Call the Cost has to be covered So, Profit zone starts post 271 Loss Zone is between 210 to 270 Less