COROMONDEL OPTION STRATEGY FOR MAY 2022

BUY 1 LOT COROMONDEL 950 CALL @ 21 AND 880 PUT @ 21 

Strike Price	Call Option Price	Strike Price	Put Option Price	Strike rate	Closing price	Payoff
950	21	880	21	10	800	117800
950	21	880	21	10	810	86800
950	21	880	21	10	820	55800
950	21	880	21	10	830	24800
950	21	880	21	10	840	-6200
950	21	880	21	10	850	-37200
950	21	880	21	10	860	-68200
950	21	880	21	10	870	-99200
950	21	880	21	10	880	-130200
950	21	880	21	10	890	-130200
950	21	880	21	10	900	-130200
950	21	880	21	10	910	-130200
950	21	880	21	10	920	-130200
950	21	880	21	10	930	-130200
950	21	880	21	10	940	-130200
950	21	880	21	10	950	-130200
950	21	880	21	10	960	-99200
950	21	880	21	10	970	-68200
950	21	880	21	10	980	-37200
950	21	880	21	10	990	-6200
950	21	880	21	10	1000	24800
950	21	880	21	10	1010	55800
950	21	880	21	10	1020	86800
950	21	880	21	10	1030	117800

IEX OPTION STRANGLE STRATEGY FOR MAY 2022

BUY 1 LOT IEX 200 PUT @ 5.4-5.5  & IEX 240 CALL @ 3.9-4

PAY OFF TABLE :-

Long & Short Butterfly Option Strategy ??

A butterfly spread is one of the neutral option trading strategies that combines bull and bear spreads with a fixed risk and limited profit. The options with higher and lower strike prices are equidistant from the at-the-money options. 

The long butterfly call spread involves buying an ITM call option, writing two ATM call options, and then buying an OTM call option.

The short butterfly spread strategy involves writing one in-the-money call option, buying two at-the-money call options, and selling one out-of-the-money call option Option to write two ATM call options and then buy one OTM call option.

WHAT IS STRANGLE STRATEGY ???

In finance, a strangle is a trading strategy that involves buying or selling two options that allows the holder to profit based on the price movement of the underlying security, with minimal dependence on the direction of price movement. A strangle consists of a call and a put with the same expiration and underlying asset, but different exercise prices. Usually the call has a higher strike price than the put. If the put instead has a higher strike price, the position is sometimes referred to as guts. When the options are bought, the position is referred to as a long strangle, while when the options are sold, it is referred to as a short strangle. A strangle is similar to a straddle position; The difference is that in a straddle, the two options have the same strike price. With the same underlying asset, strangle positions can be set up at a lower cost and lower probability of winning than straddles. Strangle positions can be used with stock options, index options or options on futures.

WHAT IS BEARISH OPTION CALL PUT STRATEGY ??

Bearish options strategies are employed when the options trader expects the underlying stock price to move downwards. It is necessary to assess how low the stock price can go and the time frame in which the decline will happen in order to select the optimum trading strategy. Selling a Bearish option is also another type of strategy that gives the trader a "credit". This does require a margin account. The most bearish of options trading strategies is the simple put buying or selling strategy utilized by most options traders. The market can make steep downward moves. Moderately bearish options traders usually set a target price for the expected decline and utilize bear spreads to reduce cost. This strategy has limited profit potential, but significantly reduces risk when done correctly. The bear call spread and the bear put spread are common examples of moderately bearish strategies. Mildly bearish trading strategies are options strategies that make money as long as the underlying asset does not rise to the strike price by the options expiration date. However, you can add more options to the current position and move to a more advanced position that relies on Time Decay. These strategies may provide a small upside protection as well. In general, bearish strategies yield profit with less risk of loss.

WHAT IS BULLISH OPTION CALL PUT STRATEGY ??

Bullish options strategies are employed when the options trader expects the underlying stock price to move higher. You can also use Theta (time decay) with a bullish/bearish combination called Calendar Spread when sideways movement is expected. The trader can also predict how high the stock price might go and what timeframe the rally might take place in order to select the optimal trading strategy for buying a bullish option. The most bullish options trading strategy used by most options traders is simply to buy a call option. The market is always in motion. It is up to the trader to figure out which strategy suits the markets for that period. Moderately bullish options traders typically set a bull run target price and use bull spreads to reduce costs or eliminate risk entirely. There are limited risk trading options by using the appropriate strategy. While the maximum profit for some of these strategies is capped, they typically cost less to use for a given notional amount of exposure. There are options that have unlimited upside or downside potential with limited risk if done right. The bull call spread and bull put spread are common examples of moderately bullish strategies. Slightly bullish trading strategies are options that make money as long as the price of the underlying asset does not fall to the strike price by the option's expiry date.These strategies can also provide protection against losses. Writing out-of-the-money covered calls is a good example of such a strategy. The buyer of the covered call pays a premium for the call option at the strike price (rather than the market price) of the assets you already own. This is how traders hedge a stock they own if it has performed against them for a period of time.

WHAT IS OPTION STRATEGY ??

Options strategies are the simultaneous and often mixed buying or selling of one or more options that differ in one or more of the option variables. Call options, simply called calls, give the buyer the right to buy a specific stock at that option's strike price. In contrast, put options, simply called puts, give the buyer the right to sell a particular stock at the option's strike price. This is often done to expose oneself to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy. A very simple strategy could be simply buying or selling a single option; However, options strategies often refer to a combination of buying and/or selling options at the same time. Options strategies allow traders to profit from movements in underlying assets based on market sentiment (i.e. bullish, bearish or neutral). Neutral strategies can be further divided into those that are bullish on volatility, and those that are bearish on volatility. Traders can also benefit from time decay, when the stock market is experiencing low volatility. The options positions used can be long and/or short positions in calls and puts.