fbpx
# Option Type Position Strike Price No. Of Lot Action
1
Option Unit Price Quantity Option Value

This is a tool to take advantage of option strategy.

Illustration:

1) In the tool, select ‘Option Type’, ‘Position’ (short or long), ‘Strike Price’ and ‘Number of Lots’
2) Press calculate to see the current price (live Nifty Option price) of this strategy.
3) e.g. if you are have bought 20 lots of puts of 7000 strike price, then select ‘put’, ‘long’, ‘7000’ and 20 in the above table.
4) This will display the ‘payoff diagram’ for this option’
5) In the next drop down you can select which option you want to see on the graph.
6) Press ‘Calculate’ button to see the live price of your option strategy.
7) You can also create more complex strategies and see the payoffs or calculate the price.
8) e.g. Long 1 lot of 7500 Call and Short 1 lot of 7600 Call –> then calculate price of strategy. If you expect the market to stay between 7500 and 7600, this strategy could fetch good returns.
9) The Payoff diagram of the above strategy will look like the below graph:
chart

Also Check

9 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here