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  • Strategy Name Number of Option Legs Direction: Bear Put Spread Two Moderatly Bearish

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    nikhil gayam
    6 views4 pages
    This bear put spread strategy involves selling a put option at a lower strike price (short put) and buying a put option at a higher strike price (long put). The net credit received is Rs. 551. The maximum profit is Rs. 949 when the underlying stock price is between the two strike prices at expiry. The maximum loss is Rs. 551 if the stock price falls below the lower strike price. The break-even point is Rs. 30,449. The strategy has a moderately bearish outlook on the underlying stock.

    Original Description:

    Option strategy

    Original Title

    C7_Bear-Put_spread

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    This bear put spread strategy involves selling a put option at a lower strike price (short put) and buying a put option at a higher strike price (long put). The net credit received is Rs. 551. The maximum profit is Rs. 949 when the underlying stock price is between the two strike prices at expiry. The maximum loss is Rs. 551 if the stock price falls below the lower strike price. The break-even point is Rs. 30,449. The strategy has a moderately bearish outlook on the underlying stock.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views4 pages

    Strategy Name Number of Option Legs Direction: Bear Put Spread Two Moderatly Bearish

    Uploaded by

    nikhil gayam
    This bear put spread strategy involves selling a put option at a lower strike price (short put) and buying a put option at a higher strike price (long put). The net credit received is Rs. 551. The maximum profit is Rs. 949 when the underlying stock price is between the two strike prices at expiry. The maximum loss is Rs. 551 if the stock price falls below the lower strike price. The break-even point is Rs. 30,449. The strategy has a moderately bearish outlook on the underlying stock.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Strategy Name Bear Put Spread

    Number of option legs Two


    Direction Moderatly Bearish
    Bear Put Spread
    Particular Value
    Underlying Nifty
    Spot Price 31150 Details
    Long Put (ITM) 31000 Spread 1500
    Short Put (OTM) 29500 Breakeven 30449
    Debit for long put 1228 Max Profit 949
    Credit for short put 677 Max Loss 551
    Net Credit -551

    Calculations
    Market Expiry Long Put_IV PP Long put payoff Short put_IV
    6600 24400 -1228 23172 22900
    6700 24300 -1228 23072 22800
    6800 24200 -1228 22972 22700
    6900 24100 -1228 22872 22600
    7000 24000 -1228 22772 22500
    7100 23900 -1228 22672 22400
    7200 23800 -1228 22572 22300
    7300 23700 -1228 22472 22200
    7400 23600 -1228 22372 22100
    7500 23500 -1228 22272 22000
    7600 23400 -1228 22172 21900
    7700 23300 -1228 22072 21800
    7800 23200 -1228 21972 21700
    7900 23100 -1228 21872 21600
    8000 23000 -1228 21772 21500
    8100 22900 -1228 21672 21400
    PR Short put payoff Strategy Payoff
    677 -22223 949
    677 -22123 949
    677 -22023 949 Bear Put Spread
    677 -21923 949
    1000
    677 -21823 949
    900
    677 -21723 949
    800
    677 -21623 949
    700
    677 -21523 949
    600
    677 -21423 949
    500
    677 -21323 949
    400
    677 -21223 949
    300
    677 -21123 949
    200
    677 -21023 949
    100
    677 -20923 949
    0
    677 -20823 949
    6600

    6800

    6900

    7000

    7100

    7300

    7400

    7600

    7800
    6700

    7200

    7500

    7700
    677 -20723 949
    7400

    Spread
    7500

    7600

    7700

    7800

    7900

    8000

    8100

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