Hi Shahdab,
Your outflow on the put is 5200
If ranbaxy closes at 396 on expiry you make 7*400(shares) + 4*400(put) = 4400
So you still lose 800.
I have said it earlier the lower the risk the lower the reward and there is no holy grail, if there is any it is discipline and trade management.
Trade well
Your outflow on the put is 5200
If ranbaxy closes at 396 on expiry you make 7*400(shares) + 4*400(put) = 4400
So you still lose 800.
I have said it earlier the lower the risk the lower the reward and there is no holy grail, if there is any it is discipline and trade management.
Trade well
I think i will be in profit after ranbaxy cross 402
And my TGT till expiry is 427. God knows where it will go.
Anyway Thanks for your precious advice.
My next query regarding DELTA.
How to calculate it? and
How to neutral it?
Have a nice Day...