Hi Srikanth,
here I put a practical example of Nifty. As we all know the nifty has a decent support 4350 and facing resistance 4550.
Here is the example:
This is bear put spread:
Short Nifty 4300p strike@ 66.30
Long Nifty 4400p strike@ 96.60
Total investment :30.30
Maximum profit from this spread = 69.70
IV:33.13 Delta = -0.28 Gamma =0.0 Theta = -2.59 Vega = 3.71
HV: 23.40
Please explain with the above example if I want to hold this position till expiry or upto my targets. Explain regarding Greeks, IV vs HV and any other which effects this trade.
Regards!
Sreeny
here I put a practical example of Nifty. As we all know the nifty has a decent support 4350 and facing resistance 4550.
Here is the example:
This is bear put spread:
Short Nifty 4300p strike@ 66.30
Long Nifty 4400p strike@ 96.60
Total investment :30.30
Maximum profit from this spread = 69.70
IV:33.13 Delta = -0.28 Gamma =0.0 Theta = -2.59 Vega = 3.71
HV: 23.40
Please explain with the above example if I want to hold this position till expiry or upto my targets. Explain regarding Greeks, IV vs HV and any other which effects this trade.
Regards!
Sreeny