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
| Action | Contract | Option Type | @ 9:30 | CMP | Result |
|---|
| Sell 2 lot |
BANKNIFTY2112132400CE |
32400 CE |
201 |
286 |
-4250 |
| Buy 1 lot |
NIFTY2112114400CE |
14400 CE |
106 |
182 |
5700 |
| Buy 1 lot |
NIFTY2112114400PE |
14400 PE |
105 |
26 |
-5850 |
| Sell 2 lot |
BANKNIFTY2112131800PE |
31800 PE |
211 |
45 |
8250 |
|
Profit (in ₹): 3825 INR | Max Profit (in ₹): 5700 INR | Max Loss (in ₹): -1100 INR |
Design Strategy