Straddle Strategy For Option Players : Profit Calculation

Straddle Strategy For Option Players initiated on 21st Jan 2009 has earned more than 40% profit in January Series till today : ( Lot size of Reliance Ind = 75 )

Anticipate Volatility in Reliance Ind due to results. Buy Straddle Strategy as given below

• Buy Reliance Call Option OF Strike Price 1110 @ 59
• Buy Reliance Put Option OF Strike Price 1110 @ 52.

Net debit in the strategy is Rs 111 per lot. ( 59+52 )

Net Debit = ( 75 *111 ) = Rs 8325

Profit in Reliance Call option OF Strike Price 1110 = ( 163.75 - 59 ) = 104.75

Loss in Reliance Put option OF Strike Price 1110 = ( 0.45 -52 ) = -51.55

Net Profit = 104.75 -51.55 = 53.20 * 75 = 3990 Rs

Net Profit of Rs 3990 on investment of Rs 8325. Profit Percentage = 48%

*Note : 163.75 & 0.45 are the todays clsoing prices of respective Options of Reliance )