ranbaxy spot is 502, sep future is 396, sep 400 call is 102, put is 36
buy 1 lot of sep future, sell 1 sep 400 call , buy 1 sep 400 put
if the price on settlement is anywthere from 0 to infinity, your net gain is 65 rs which is 52000 rs
if price is at 400, you get 100 from call, lose 35 from put. net gain 65
if price is at 500, you get 100 from future, lose 35 from put, net gain 65
if price is at 600, you get 200 from future, lose 100 from call, lose 35 from put. net gain 65 rs
if price is at 300, you lose 100 from fture, gain 100 from call, gain 65 from put. net gain 65 rs
margin requirements : need margin for 1 lot future, 1 lot call. which is around 50% of 1 lot = 2 lakh rupees. stocks or cash
m2m : most brokers wont adust m2m on options. but they do on futures on daily basis. so if price goes below 400, you need to keep m2m for that. you need to keep for atleast 65 rs (safe side) which will cover till 335 rs spot. but yo got 65 rs from call/put. so keep this money for this purpose. if spot goes above 400, then your fture will generate mpney for you to cover trigger on call
overall, not much risk in strategy, margin, m2m
any suggestions ? what happens if call/put is exersized ?
buy 1 lot of sep future, sell 1 sep 400 call , buy 1 sep 400 put
if the price on settlement is anywthere from 0 to infinity, your net gain is 65 rs which is 52000 rs
if price is at 400, you get 100 from call, lose 35 from put. net gain 65
if price is at 500, you get 100 from future, lose 35 from put, net gain 65
if price is at 600, you get 200 from future, lose 100 from call, lose 35 from put. net gain 65 rs
if price is at 300, you lose 100 from fture, gain 100 from call, gain 65 from put. net gain 65 rs
margin requirements : need margin for 1 lot future, 1 lot call. which is around 50% of 1 lot = 2 lakh rupees. stocks or cash
m2m : most brokers wont adust m2m on options. but they do on futures on daily basis. so if price goes below 400, you need to keep m2m for that. you need to keep for atleast 65 rs (safe side) which will cover till 335 rs spot. but yo got 65 rs from call/put. so keep this money for this purpose. if spot goes above 400, then your fture will generate mpney for you to cover trigger on call
overall, not much risk in strategy, margin, m2m
any suggestions ? what happens if call/put is exersized ?