May 19, 2009

Rs. 5,64,250 Profit in 4 Days

See how much we have minted in our Option Hedging Strategy ----

Hedging Strategy 1 :

Nifty 3700 Call Option & Nifty 3600 Put Option :
Bought 3700 Call @ 120.50 & Sold @ 840
Bought 3600 Put @ 121 & Sold @ 13
Net Profit - 30575 Per Lot
We had 10 Lots, so Net Profit in
strategy 1 is 30575*10 =
3,05,750

Hedging Strategy 2 :

Nifty 3800 Call Option & Nifty 3400 Put Option :
Bought 3800 Call @ 75 & Sold @ 660
Bought 3400 Put @ 77 & Sold @ 9
Net Profit - 25,850 Per Lot
We had 10 Lots, so Net Profit in
strategy 2 is 25,850*10 = 2,58,500

Net Profit in 4 days = RS. 5,64,250
On an Investment of Rs. 2 Lac only