This is High risk- High reward strategy. Good results when Nifty is trending and BankNifty is range bound. Bad results when Nifty is range bound and Banknifty is trending.
COVERED CONTRA STRANGLE (NIFTY + BANKNIFTY)
| Action | Contract | Option Type | @ 9:30 | CMP | Result |
|---|
| Sell 2 lot |
BANKNIFTY22MAY34900CE |
34900 CE |
99 |
187 |
-4400 |
| Buy 1 lot |
NIFTY22MAY16350CE |
16350 CE |
86 |
137 |
2600 |
| Buy 1 lot |
NIFTY22MAY15800PE |
15800 PE |
85 |
50 |
-1800 |
| Sell 2 lot |
BANKNIFTY22MAY32700PE |
32700 PE |
102 |
71 |
1550 |
|
Approx Margin Required: 325000 Profit (in ₹): -2050 INR | Max Profit (in ₹): 0 INR | Max Loss (in ₹): -2950 INR |