CA NeWs Beta*: Fixed income strategy for L&T using options

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Thursday, September 12, 2013

Fixed income strategy for L&T using options

an fixed income strategy on larsen and tourbo...Buy 2 lots of 820 call at 31.80
sell one lot of 833 call at 25.15
sell 1 lot of 800 call at 41.50  


where ever the scrip moves uil get an fixed profit of
3.05...
if u want more profits then do it in multiples of lots...
Be swift uil not get counterpartys at exact rates.

ps: 3.05 means 3.05*375{lot size}=1143 { fixed profit where ever the scrip may go...let it be 1000 or 700..thing is dat need to wait stil expiry and scrip must not quote at present price during expiry day which is quiet possible}

Disclaimer: The views are of the analyst who has written this column. Site does not take any responsibility for losses out this suggestion.

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