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 |
BANKNIFTY22JUN33700CE |
33700 CE |
69 |
0 |
3450 |
| Buy 1 lot |
NIFTY22JUN15850CE |
15850 CE |
63 |
0 |
-3150 |
| Buy 1 lot |
NIFTY22JUN15850PE |
15850 PE |
74 |
70 |
-200 |
| Sell 2 lot |
BANKNIFTY22JUN33200PE |
33200 PE |
74 |
0 |
3700 |
|
Approx Margin Required: 325000 Profit (in ₹): 3800 INR | Max Profit (in ₹): 3950 INR | Max Loss (in ₹): -3850 INR |