Dear Cinderblock
Will you pl. explain me how you have arrived profit @ 57 points & loss @39 points after +/- 100 points.
And also do you mean +57 points when nifty touches 8348.95-100= 8248.95 & -39 points when nifty touches 8348.95+100=8448.95?
Actualy i want to book profit @ 100 points & stoploss @-100 points for that how much nifty has to go up & down?
1. If nf spot expires at 8348.95, you neither gain or lose on your futures position . The puts that you sold at 109.95 will now be worth 52 (8400-8348). So your net gain on short put position is 109-52=57.
Now, at any point below 8400, no matter where nf spot expires, your short put positions and short futures position will move in opposite direction and cancel out each other. So, your max gain for this strategy is limited to rs.57. You CANNOT earn more than this amount.
Above 8400, your puts will be unable to cancel out losses from your short futures position because at 8400, puts are already worth rs.0. So every point above 8400 will lead to a dip in profit until 8458 when you will be breakeven. Above 8458, your combined position will be in a loss. Have made necessary changes to BEP calculations in my previous post.
2. Yes, these are +/-100 NF points from 8348
3. Your position will NEVER give you a 100 point profit. Max is 57 as long as nf<8400. Your position will give you a 100 point loss at BEP+100.