Option Strategy

1. OPTION STRATEGIES

2. BULL CALL SPREAD
• Proficiency - Intermediate
• Outlook - Bullish
• All strikes have to be of the same expiry.
• It is a net debit strategy.
• Max risk and max reward are capped.
• It brings down the cost compared to buying naked call

4. Breakeven - 1845.7 (1820+(59.65-33.95))
Max profit - 1845.7-1880 = 34.3*300
Max loss - 59.65-33.95 = 25.7*300

5. LONG PUT
• Proficiency - Novice
• Direction - Bearish
• Opposite - Long call
• Maximum risk - Capped (Premium Paid)
• Maximum reward - Uncapped (Strike price - Premium
paid)
• Strategy - Capital gain

8. SHORT STRANGLE
• Proficiency: Intermediate
• Direction: Neutral
• Volatility: High
• Maximum Risk: Uncapped
• Maximum Reward: Capped
• Strategy: Capital Gain

10. Breakeven - 1688(for put) - 1952(for call)
Maximum Profit - +15,405 (15.73%)
Maximum Loss - Undefined

11. INFY Exp Price P/L Call P/L Put Net
1740 28 24 52
1760 28 24 52
1780 28 24 52
1800 28 24 52
1820 28 24 52
1840 28 24 52
1860 28 24 52
1880 28 24 52
1900 28 24 52

12. THANK YOU