Investment in stock or commodity markets is subject to market risk. PLEASE FOLLOW THE CALLS PROVIDED OVER SMS OR MESSENGER. WE DO NOT GUARANTEE THE CALLS PROVIDED OVER PHONE CALLS

Option Long Strangle

INR 19,999.00
 


Subcription:





* Benefits & Features :

Long strangle service is designed for those traders who want to trade safe and also safe guard their capital. In this services we provide hedging call based news or events which provide volatility.Taking position in both the side with equal premium will lock your loss and only provide opportunity to earn profit. Here in iTS capita long strangle give you limited risk with unlimited profit.

The long strangle, also known as buy strangle or simply "strangle", is a neutral strategy in options trading that involve the simultaneous buying of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying stock and expiration date.
The long options strangle is an unlimited profit, limited risk strategy that is taken when the options trader thinks that the underlying stock will experience significant volatility in the near term

Unlimited Profit Potential
Large gains for the long strangle option strategy is attainable when the underlying stock price makes a very strong move either upwards or downwards at expiration.
The formula for calculating profit is given below:

  • Maximum Profit = Unlimited
  • Profit Achieved When Price of Underlying > Strike Price of Long Call + Net Premium Paid OR Price of Underlying < Strike Price of Long Put - Net Premium Paid
  • Profit = Price of Underlying - Strike Price of Long Call - Net Premium Paid OR Strike Price of Long Put - Price of Underlying - Net Premium Paid

                                                                     
   

Limited Risk
Maximum loss for the long strangle options strategy is hit when the underlying stock price on expiration date is trading between the strike prices of the options bought. At this price, both options expire worthless and the options trader loses the entire initial debit taken to enter the trade.

The formula for calculating maximum loss is given below:

  • Max Loss = Net Premium Paid + Commissions Paid
  • Max Loss Occurs When Price of Underlying is in between Strike Price of Long Call and Strike Price of Long Put
  • Basic specifications are as mentioned below:
  • Trader can trade in  Futures and Index Options 
  • Contract Size: Depends on the stock or index
  • Expiration Cycle: 3 Months 
  • Tick Size: 5 paisa per share or contract 
  • Trading Hours: 9:15 a.m. to 3:30 p.m. IST (on business days)
  • Last Trading Day: Last Thursday of the expiration month(for futures)
  • Margin Requirement: Value of premium X lots