PETRONET STRADDLE STARTEGY
PETRONET has dropped more than 5 % in last trading session with huge rise in open interest. Volatility in this counter is expected to rise further in this counter. We suggest Straddle strategy in Petronet to make most of this situation.
PETRONET STRANGLE STRATEGY
LEG1: BUY PETRONET 160 CALL NEAR 4
LEG2: BUY PETRONET 160 PUT NEAR 6
COST =20000
RISK PER LOT = (6+4)*2000=20000
RETURN = UNLIMITED
LOWER BREAK EVEN POINT :150
HIGHER BREAK EVEN POINT 170
|
Closing price |
Lot size |
net investment |
Total Investment |
Return from call |
return from put |
Payoff |
|
120 |
2000 |
20000 |
0 |
80000 |
60000 |
|
|
125 |
2000 |
20000 |
0 |
70000 |
50000 |
|
|
130 |
2000 |
20000 |
0 |
60000 |
40000 |
|
|
135 |
2000 |
20000 |
0 |
50000 |
30000 |
|
|
140 |
2000 |
20000 |
0 |
40000 |
20000 |
|
|
145 |
2000 |
20000 |
0 |
30000 |
10000 |
|
|
150 |
2000 |
20000 |
0 |
20000 |
0 |
|
|
155 |
2000 |
20000 |
0 |
10000 |
-10000 |
|
|
160 |
2000 |
20000 |
0 |
0 |
-20000 |
|
|
165 |
2000 |
20000 |
10000 |
0 |
-10000 |
|
|
170 |
2000 |
20000 |
20000 |
0 |
0 |
|
|
175 |
2000 |
20000 |
30000 |
0 |
10000 |
|
|
180 |
2000 |
20000 |
40000 |
0 |
20000 |
|
|
185 |
2000 |
20000 |
50000 |
0 |
30000 |
|
|
190 |
2000 |
20000 |
60000 |
0 |
40000 |
|
|
195 |
2000 |
20000 |
70000 |
0 |
50000 |
|
|
200 |
2000 |
20000 |
80000 |
0 |
60000 |
|
|
205 |
2000 |
20000 |
90000 |
0 |
70000 |
|
|
210 |
2000 |
20000 |
100000 |
0 |
80000 |
|
|
215 |
2000 |
20000 |
110000 |
0 |
90000 |
|
|
220 |
2000 |
20000 |
120000 |
0 |
100000 |
|
|
225 |
2000 |
20000 |
130000 |
0 |
110000 |
|
|
230 |
2000 |
20000 |
140000 |
0 |
120000 |
|
|
235 |
2000 |
20000 |
150000 |
0 |
130000 |
|
|
