RPL ( Bse Cmp 74.50 ) - Lot size 1675
1) Buy (1 lot) Call option RPL of December Month Strike Price 75 @ 4.05 Rs
Premium Paid = 1675 * 4.05 = 6783.75 Rs
2) Sell ( 1 lot ) Call Option RPL of December Month Strike Price 85 @ 1.05
Premium Received = 1675 * 1.05 = 1758.75
Net Premium Paid = Maximum Loss in this strategy.
Net Premium = 6783.75-1758.75 = 5025
Maximum Profit from the strategy.
Call Option bought at 75+4.05 = 79.05
Call Option sold at 85 + 1.05 = 86.05
Maximum Profit = ( 86.05 -79.05 ) * lot size= 7 * 1675= 11725
Breakeven = 75+4.05-1.05 = 78.05
Note : RPL is looking good for short term delivery. Buy at cmp for target 80-83.50-86.75. In the above strategy maximum profit will be earned if RPL moves up till expiry. All the rates above are without brokerages, so net profit / loss will vary accordingly.
Risk Reduced = Sell ( 1 lot) option call of Strike Price 80@ 2.15 instead of Strike Price 85. But in this case the profits will also be reduced accordingly.
