Weekly Strategy Update
Live Option Strategies – LONG STRANGLE to Take Advantage of Expected Rise in Volatility on Elections
April 2014 Nifty 7100 Call Option Premium at Rs.0.95. Implied Volatility of 16.41%.
April 2014 Nifty 6300 Put Option Premium at Rs.0.8. Implied Volatility of 25.73%.
Total Cost for the Strategy for 1 lot of Put and Call Options is equal to Rs.12.3 multiplied by lot size equal to 50 is Rs.615. Current total price of the Options is equal to Rs.1.75 that gives a loss of Rs.10.55 multiplied by the lot size of 50 is equal to Rs.527.5 for the strategy. The Strategy has given -85.77% return since recommendation.
The Total premium value of Rs.12.3 has been written off as only 7 trading days are left for expiry.