Saturday, June 11, 2016

Short straddle in BHEL and BankNifty

This strategy requires that you sell both call and put options of the same strike price for the same expiry date. This strategy makes profit because of the decay in premium with time. Short straddle can be used if you know where the stock is going to end. First column shows the underlying  price.Other columns shows the premium of call and put options combined for the strike price mentioned in the top. BHEL 125 120 130 115 110 114.85 15.55 14.05 18.25 12.45 13.35 113.85 15.7 14.15 18.9 13.65 13.5 116.45 15.2 13.5 19.35 13.35 14.65 116.85 15.15 13.05 17.95 12.9 14.35 112.85 15.9 13.8 18.3 12.8 12.65 113.9 15.45 13.15 19.85 12.05 12.55 119.25 12.35 10.95 17.85 11.1 12.55 122.8 9.75 9.65 10.85 11.3 14.95 127.45 9.15 11 9.2 14.4 18.5 127.3 8.2 10.25 8.35 14.05 17.65 133.65 10.75 14.3 7.7 18.9 23.65 132.2 9.65 13.25 6.85 17.35 20.95 132.95 9.85 14.15 6.8 17.65 23.6 128.9 6.9 10.55 5.9 14.65 19.15 127.55 5.7 8.55 5.15 12.8 18.7 125.65 4.15 6.9 5.4 10.7 15.35 129.15 4.6 9.2 3.15 15.05 20.25 127.75 3.85 8.3 2.6 13.3 19.05 125 0.1 5.05 4.9 9.85 15 For...