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BANKNIFTY CALL RATIO SPREAD
on 17-07-2020 Friday EOD Closing price 22080
Buy 22300 CE at Rs.277
Sell 22700 CE at Rs.150
Sell 23000 CE at Rs.90
Total Debit = 36
Upside Stoploss 23000 +
Downside No stoploss only strategy risk 37*20
Later can be reduced to zero risk also by selling far OTM Strikes
Max profit = 360*20 if it expires at Nearest Short Strike 22700
Strategy Adjustment is the key success for getting profit when we deploy any option strategy. We can even say that " Strategy adjustment is more important than the Strategy itself" .
How to Look profit - BANKNIFTY MOVED 690pts up. Now EXIT LONG at 22300 CE and ENTER LONG at 22800 CE at 228.6.
Reason - We are initiating a New leg so that we achieve NO LOSS ONLY PROFIT STATE. By doing this adjustment we are Locking the Profit wherver BANNIFTY EXPIRES. Below three screenshots explain all 3 cases.
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