Scribd Logo
Upload

Welcome to Scribd!

  • Options Strategies BULL SPREAD

    Uploaded by

    Ishan Mishra
    14 views5 pages
    1. A bull call spread involves buying an in-the-money call option and selling an out-of-the-money call option on the same underlying asset. 2. This strategy profits if the underlying asset rises above the breakeven point but is limited in risk and potential profit. 3. For a bull put spread, an out-of-the-money put option is sold and an in-the-money put option is bought on the same asset. This strategy profits if the underlying asset falls below the breakeven point but has limited risk and profit potential.

    Original Description:

    Bull spread strategy

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1. A bull call spread involves buying an in-the-money call option and selling an out-of-the-money call option on the same underlying asset. 2. This strategy profits if the underlying asset rises above the breakeven point but is limited in risk and potential profit. 3. For a bull put spread, an out-of-the-money put option is sold and an in-the-money put option is bought on the same asset. This strategy profits if the underlying asset falls below the breakeven point but has limited risk and profit potential.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    14 views5 pages

    Options Strategies BULL SPREAD

    Uploaded by

    Ishan Mishra
    1. A bull call spread involves buying an in-the-money call option and selling an out-of-the-money call option on the same underlying asset. 2. This strategy profits if the underlying asset rises above the breakeven point but is limited in risk and potential profit. 3. For a bull put spread, an out-of-the-money put option is sold and an in-the-money put option is bought on the same asset. This strategy profits if the underlying asset falls below the breakeven point but has limited risk and profit potential.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 5

    Bull Call Spread

    buy a call option which is In the money 14200


    Sell a call option which is Out of the money 14350

    Strikes Price of Nifty Buy leg payoff/profit


    Breakeven for Buy leg 14200 -520
    14720 14250 -470
    14350 -370
    Breakeven for Sell leg 14450 -270
    14644 14550 -170
    14650 -70
    In Call option 14750 30
    Breakeven is
    Strike+Premium 14850 130
    14950 230
    15050 330
    15150 430
    15250 530
    <<--Input
    Payoff for Call option when you buy it, is ->
    <<--Do not edit
    520 (SPOT-STRIKE)-PREMIUM

    294 or (SPOT-BREAKEVEN POINT)

    Sell leg payoff/Profit Final Payoff/Profit


    294 -226 Payoff for Call option when you sell it, is ->

    294 -176 (STRIKE-SPOT)-PREMIUM


    294 -76 or (BREAKEVEN POINT - SPOT)
    194 -76
    94 -76
    -6 -76
    -106 -76 bull call spread
    -206 -76
    -306 -76 1. buying a call option itm
    2. selling otm call option
    -406 -76
    -506 -76 limited risk
    -606 -76 return limited

    market is bullish
    Bull Put Spread
    sell a put option which is otm 14850
    buy a put option which is Itm 15000

    Strikes Price of Nifty Buy leg payoff/profit


    Breakeven for Buy leg 14200 585
    14785 14250 535
    14300 485
    Breakeven for Sell leg 14350 435
    14868 14400 385
    14450 335
    In Put option 14500 285
    Breakeven is 14550 235
    Strike-Premium 14600 185
    14650 135
    14700 85
    14750 35
    14800 -15
    14850 -65
    14900 -65
    14950 -65
    15000 -65
    15050 -65
    15100 -65
    15150 -65
    15200 -65
    15250 -65
    15300 -65
    15350 -65
    15400 -65
    15450 -65
    15500 -65
    15550 -65
    15600 -65
    15650 -65
    15700 -65
    15750 -65
    15800 -65
    15850 -65
    15900 -65
    15950 -65
    <<--Input Payoff for Put option when you buy it, is -> Payoff for Call option wh
    <<--Do not edit (STRIKE-SPOT)-PREMIUM (SPOT-STRIKE)-PREMIUM
    65
    or (BREAKEVEN POINT - SPOT) or (SPOT-BREAKEVEN PO
    132

    Sell leg payoff/Profit Final Payoff/Profit


    Payoff for Put option when you sell it, is -> Payoff for Call option whe
    -668 -83
    -618 -83 (SPOT - STRIKE)-PREMIUM (STRIKE-SPOT)-PREMIUM
    -568 -83 or (SPOT - BREAKEVEN POINT) or (BREAKEVEN POINT - S
    -518 -83
    -468 -83
    -418 -83
    -368 -83
    -318 -83
    -268 -83
    -218 -83 Bull put spread
    -168 -83 we are buing otm put option and we are selling itm put
    -118 -83 option
    -68 -83
    -18 -83
    32 -33
    82 17
    132 67
    182 117
    232 167
    282 217
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    300 235
    Payoff for Call option when you buy it, is ->

    (SPOT-STRIKE)-PREMIUM
    or (SPOT-BREAKEVEN POINT)

    Payoff for Call option when you sell it, is ->

    (STRIKE-SPOT)-PREMIUM
    or (BREAKEVEN POINT - SPOT)

    e are selling itm put

    You might also like