OPTION STRATERGIES

BULLISH FRONT SETUPS

• IN THE FIRST STRATERGY WE WILL BUY CE (CALL) AT ITM AND SELL CE
(CALL) ATM IT IS A BULLISH STRATERGY IT IS USED FOR POSITIONAL
TRADING .
• NIFTY SPOT IS 22045 THEN BUY ITM CE I.E. 21900 @260/.5
• AND SELL ITM CE I.E. 22050 @169.4 THE PROBABLITY OF TRADE IS
54.8% MAX PROFIT IS 2945 INR AND MAX LOSS IS 4555, RISK TO
REWARD RATIO IS 1:0:65 BEP IS 21992 ESTIMATED MARGIN IS 22046
• IN THE SCOND STRATERGY WE WILL BUY ATM CE(CALL) AND SELL
OTM CE (CALL)
• BANKNIFTY SPOT IS 47089 47100 @464 BUY ATM CE I.E. 48500
@42.25 AND SELL OTM CE I.E. PROBABLITY OF THIS TRADE IS 36.45
MAX PROFIT IS 14674 AND MAX LOSS IS 6326 RISK TO REWARD RATIO
IS 1:2:32 AND BEP IS 47522 ESTIMATED MARGIN IS 14140
• IN THE THIRD STRATERGY OF BULLISH FRON SPREAD WE WILL BUY
OTM CE AND SELL OTM
• NIFY SPOT IS 21835 BUY OTM CE I.E. 22000 @99 AND SELL NOTM CE
I.E. 23500 @1.65 PROBABILTY OF PROFIT IS 28.8% AND MAX PROFIT
IS UNDIFEND AND MAX LOSS IS 5072 BEP IS 22102 ESTIMATED
MARGIN IS 5072
BEARISH FRONT SETUPS
• IN THIS STRATERGY WE WILL BUY ITM PE AND SELL ATM PE IT IS A
BEARISH STRATERGY
• BANKNIFTY SPOT IS 46777 BUY ITM PE I.E. 46500@278% AND SELL
ATM PE I.E. 46800 @408 PROBABILITY OF PROFIT 54.66% AND MAX
PROFIT 1949 AND MAX LOSS 2551 RISK TO REWard ratio is 1:0:76 bep
is 46671 estimated margin 18335
• In the second stratergy of bear front spread is buy atm pe and sell
otm pe
• Nifty spot is 21856 buy atm pe ie 21850 @164.9 and sell otm pe
23000 @ 1132 probability of profit 35.5% max profit 48378 max loss
9122 risk to rewaed ratio 1:5:3 bep is 22033 estimated margin 78777
• In this stratergy we will buy otm pe and sell otm pe
• Banknnifty spot is 46909 we will buy otm pe 47500 @716 and sell
otm pe 48800 @1852 pronbability of profit is 26.83% max profit
17038 and max loss 2462 rr ratio is 1:6:92 bep is 47665 margin is
33699
Bullish back setup
• In this stratergy sell itm pe and buy atm pe . nifty spot is 21861 sell
itm pe i.e. 21600 @84.75 and buy atm i.e 21850 @163 probability of
profit 42% max profit 8588 and max loss 3912 rr ratio is 1:2:2 bep is
21771 estimated margin is 21870
• In this stratergy we will sell atm pe and buy otm pe
• Banknifty spot is 46884 so sell atm pe i.e. 47000 @457 and buy otm
48000 @1140 max profit 4755 and max loss 10245 probability of
profit 63% rr ratio 1:0:46 bep is47317 estimated margin is 14065
• In this stratergy we will sell otm pe and buy otm pe
• Nifty spot is21884 so sell otm pe 23000@1102 and buy otm pe
23200@1298 probability of profit is 98.76 max profit 228 max loss
9772 rr ratio 1:02:2 bep is 23004 and estimated margin 21885
Bearish back setup
• In this stratergy sell itm ce and buy atm ce
• Banknifty spot 46833 sell itm 46400 @785 buy atm46800 @514
probability of profit 44.65 max profit4059 max loss 1941 rr ratio
1:2:9 bep 46670 estimated margin 20214
• In this stratergy we will sell atm ce and buy otm ce
• nifty spot is 21856 sell atm21900 @162 buy otm 22550 @8.25
probability of profit 64.58% max profit 7688 max loss 24812 rr ratio
1:0:32bep 2205 estimated margin 55458
• In the last stratergy we will sell otm and ce and buy otm ce
• Banknifty spot is 46836 sell otm 47300 @261.6 buy otm 48400
@34.45 probability of profit 71% max profit 3407 max loss 13093 rr
ratio1:0:26 bep 47527 estimated margin 30800