Algo Trading

Algo Trading Strategy : Long Strangle

Please Share

Algo Trading Strategy : Long Strangle is executed when a trader wants to take advantage of Significant rise in a Volatility or a strong move in either direction by underline stock on some news or data.

Strategy :

BUY OTM CALL

BUY OTM PUT

NIFTY 50 Underline : 17530

BUY OTM CALL Strike 17600 : Premium Paid Rs. 92

BUY OTM PUT Strike 17500 : Premium Paid Rs. 112

When NIFTY 50 Falls to 17200

Net Profit = 17500-17200-92-112 = Rs.96

When NIFTY 50 Rises to 17900

BUY OTM CALL Strike 17600 : Premium Paid Rs. 92

BUY OTM PUT Strike 17500 : Premium Paid Rs. 112

Net Profit = 17900-17600-92-112 = Rs.96

Formula for Maximum Profit :

Price of Underlying – Strike Price of Long Call – Net Premium Paid OR

Strike Price of Long Put – Price of Underlying – Net Premium Paid

Maximum Profit : Unlimited

Maximum Loss : Premium Paid + Brokerage

ALGO Strategy Synthetic Long : Algo Strategy : Long Straddle

NSE India Options Chain Website https://www.nseindia.com/option-chain 

finsuranceloaninsurance

Recent Posts

HDFC Bank Buy @ 1637.55 TSL 1616.80

HDFC Bank Buy @ 1637.55 TSL 1616.80 ( Trailing Stop Loss : TSL ) CMP…

1 year ago

Understanding G-Secs: Yield, Interest Rates, Coupon Rates, and Profit Potential

Title: Understanding G-Secs: Yield, Interest Rates, Coupon Rates, and Profit Potential Introduction Government securities (G-Secs)…

1 year ago

Artificial intelligence (AI) has revolutionized Financial Markets

Artificial intelligence (AI) has revolutionized financial markets , particularly in the realm of algorithmic (algo)…

1 year ago

Short Straddle Options Strategy

Short Straddle Options Strategy Theta decay is a concept in options trading that refers to…

2 years ago

Jim Simons the Wizard of Stock Market

Jim Simons the Wizard of Stock Market Jim Simons the is the founder of Renaissance…

2 years ago

Bikaji Foods IPO Detail

Bikaji Foods IPO Detail Primary business of our Company We are one of India’s largest…

2 years ago

This website uses cookies.