Tuesday, April 27, 2010

Option Strategies

Buy 1 lot May 5500 Call, Sell 2 lots May 5600 call and Sell 5 lots May 5700 calls. Buy 1 lot May 5000 Put, Sell 2 lots May 4900 puts and Buy 1 lot May 4800 put



This strategy is for hedgers and participants who expect a fall in the market. This strategy will provide a minimum return of 1.9% below 5710. The maximum profit of 5.8% comes in at 4900 and 5600.



Sell 1 lot June 5800 Call at 21 and Sell 1 lot June 4200 Put



This strategy will provide a profit of 5.9% throughout the range of 4170 to 5830. This is a 1600 point range with extremely good profit in 2 months. One may take advantage of this safe strategy.

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