Nifty Fut December Series Cmp 3039 - Lot size 50. ( MiniNifty lot size - 20)1) Sell (1 lot) Nifty Fut of December Month @ 3039.35 Rs
Approx. Margin Paid = ( Rate * lot size * % margin for nifty) = ( 3039 * 50 * 20% ) = 30400 Rs
2) Buy ( 1 lot ) Nifty Call Option Index of December Month Strike Price 3050 @ 36
- Premium Paid = 36 * 50 = 1800 Rs
- Net Margin Paid = 30400 + 1800 = 32220 Rs
- Net Nifty Short Rate = 3039-36 = 3003 ( Breakeven )
Maximum Profit from the strategy = Unlimited to the extent Nifty fut falls below 3003.
Maximum Loss from the strategy = 36 +47 = 83 Rs ( 1 + 2 )
1) Nifty Call Option Dec 3050 @ 36 = Maximum loss is the premium paid = 36Rs
2) Nifty Fut = ( 3086 -3039 ) = 47 Rs ( Loss in nifty fut short above 3086 will be compensated by buy Nifty Fut Call option of Strike price 3050. )
Maximum Loss from the strategy = 36 +47 = 83 Rs ( 1 + 2 )
1) Nifty Call Option Dec 3050 @ 36 = Maximum loss is the premium paid = 36Rs
2) Nifty Fut = ( 3086 -3039 ) = 47 Rs ( Loss in nifty fut short above 3086 will be compensated by buy Nifty Fut Call option of Strike price 3050. )
* Note : This strategy is good if you feel market will fall down in near term. To hegde the Nifty short position an ( IN THE MONEY CALL OPTION ) Nifty Call option is bought. The above strategy is initiated as Nifty Fut likely to fall. Nifty fut will be good if sustains above 3118.
Maximum profit will be earned if Nifty Fut falls below 3003 till expiry. All the rates above are without brokerages, so net profit / loss will vary accordingly.
Point to Remember : To trade in Options you need to have a clear view of the markets ( UP /DOWN/FLAT ) & knowledge about the Moneyness, Stike Price, Time Value & its logics.
Validity : 2 days till expiry of Dec Series.