Riskless Algo Strategy : Short Box is an Algo Strategy which is executed when options are overpriced than their expiry Values. Strategy : BUY OTM Call SELL ITM Call SELL ITM PUT BUY OTM PUT Formula : Net Premium Received-Higher Strike Price of Call/Put – Lower Strike Price of Call/Put Let me Explain with this […]
Tag: optionstrategy
Options Strategy : Synthetic Long Futures
Options Strategy : Synthetic Long Futures strategy is executed when a trader is bullish on underline futures contract . But instead of buying a Futures Contract executes a Options Strategy : Synthetic Long Futures . Synthetic Long Futures Strategy Buy ATM Call Sell ATM Put The Trader instead of Buying a Futures Contract Buy ATM […]
Riskless Algo Strategy : Reversal
Riskless Algo Strategy : Reversal is an Algo Strategy which is executed when options are undervalued to the underline Stock or Future Contract. Strategy : To Sell an Underline Stock or Future Contract and Square off it with a Synthetic Long Stock or Future Short/Sell Stock or Future Contract and Sell an ATM Put and […]