bank nifty option strategies booklet
TRANSCRIPT
Bank NiftyOptionsStrategies
Bank Nifty
Profit, when: Bank Nifty closes above thestrike price on expiry
Loss, when: Bank Nifty closes below thestrike price on expiry
Bank Nifty
25
8900
8800
500
9300
Bank Nifty
-12500 0 -12500
-12500 2500 -10000
-12500 10000 - 2500
-12500 15000 2500
8800
9000
9200
9400
9600 -12500 20000 7500
15000
10000
0
5000
-5000
-10000
-15000
-20000
8400
8500
8600
8700
8800
8900
9000
9100
9200
9300
9400
9500
9600
9700
9800
Payoff from Call Brought
Bank NIfty
Bullish on Bank Nifty
Profit, when: Bank Nifty does not go down and option expires unexercised
Loss, when: Bank Nifty goes down and option exercised
15000
10000
0
5000
-5000
-10000
-15000
-200008
00
0
81
00
82
00
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
Payoff from Put Sold
Bank NIfty
Bank Nifty
25
8900
8800
400
8400
Bank Nifty
8000
8200
8400
8600
8800
Example: Sell 1 Call Option*
9000
10000
10000
10000
10000
10000
10000
-20000
-15000
-10000
-5000
0
0
10000
5000
0
5000
10000
10000
Pay-off fromITM Call brought
Pay-off fromOTM Call Sold
Bank Nifty
8500
8200
8400
8600
8800
-12500
-12500
-10000
-5000
0
10000
10000
10000
7500
2500
-2500
-2500
0
2500
2500
25
ITM Call Strike Price
Call Premium
OTM Call Strike Price
Call Premium
Break Even
Bank Nifty 8900
8700
500
9000
400
8900
15000
10000
0
5000
-5000
-10000
-15000
-20000
82
00
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank NIfty
94
00
95
00
96
00
Payoff from Call Sold Payoff from Call Brought
Pay-off fromPut sold
Pay-off fromPut purchase
Bank Nifty
8600
8800
9000
9200
9400
0
5000
10000
12500
12500
-5000
-10000
-10000
-10000
-10000
-5000
-5000
0
2500
2500
25
Sell OTM Put Strike Price
Put Premium
Buy OTM Put Call Strike Price
Put Premium
Break Even
Bank Nifty 8900
8800
500
8500
400
9000
Example: Buy 1 ITM Call Option and Sell 1 OTM Call Option*
15000
10000
0
5000
-5000
-10000
-15000
-20000
82
00
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank NIfty
94
00
Payoff from Put BroughtPayoff from Put Sold
25
Strike Price
Premium
Break Even
Bank Nifty 8900
8800
200
9100
Example: Buy 1 Future and 1 Put Option*
Future Price
Pay-off fromFutures Long
Pay-off fromPut option brought
Bank Nifty
8600
8800
9100
9200
9500
-7500
-2500
5000
7500
15000
0
-5000
-5000
-5000
-5000
-7500
-7500
0
2500
10000
15000
10000
0
5000
-5000
-10000
-15000
-20000
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
94
00
95
00
Net Payoff
Bank NIfty
96
00
Payoff from Put BroughtPayoff from Futures Long
25
Future Price
Strike Price
Break Even
Bank Nifty 8900
8900
9100
8700
Example: Exisiting 1 Long Future and Sell 1 OTM Call Option*
Spot Price
Pay-off fromFutures Long
Pay-off fromCall sold
Bank Nifty
8500
8600
8700
8800
8900
-10000
-7500
-5000
-2500
0
5000
5000
5000
5000
5000
-5000
-2500
0
2500
5000
Premium 200
15000
10000
0
5000
-5000
-10000
-15000
-20000
82
00
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Call SoldPayoff from Futures Long
95
00
96
00
25
Put Strike Price
Put Premium
Break Even
Bank Nifty 8900
8800
150
8850
Example: Buy 1 Future and 1 Put Option Contract and Sell 1 Call Option Contract*
Call Strike Price 9000
Call Premium 200
Future Price
Pay-off fromFutures Long
Bank Nifty
8600
8800
8850
9000
9300
-7500
-2500
-1250
2500
10000
1250
-3750
-3750
-3750
-3750
-1250
-1250
0
3750
3750
Pay-off fromCall sold
Pay-off fromPut brought
5000
5000
5000
2500
-2500
15000
10000
0
5000
-5000
-10000
-15000
-20000
82
00
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Put BroughtPayoff from Futures Long
95
00
96
00
97
00
20000
25000
Payoff from Call Sold
25
Put Strike Price
Put Premium
Break Even
Bank Nifty 8900
8800
300
9100
Example: Sell 1 OTM Put Option and Buy 1 OTM Call Option*
Spot Price
Pay-off fromPut sold
Pay-off fromCall brought
Bank Nifty
8700
8900
9100
9300
9500
5000
7500
7500
7500
7500
-10000
-10000
-7500
-2500
2500
-5000
-2500
0
5000
10000
9000
Call Premium 400
Call Strike Price
15000
10000
0
5000
-5000
-10000
-15000
-20000
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Call BroughtPayoff from Put Sold
95
00
96
00
97
00
20000
25
Strike Price
Premium
Break Even
Bank Nifty 8900
8800
400
8400
Example: Buy 1 Put Option*
Spot Price
Pay-off from Pay-off fromBank Nifty
8000
8200
8400
8600
8800
-10000
-10000
-10000
-10000
-10000
20000
15000
10000
5000
0
10000
5000
0
-5000
-10000
9000 -10000 0 -10000
15000
10000
0
5000
-5000
-10000
-15000
-200008000
8100
8200
8300
8400
8500
8600
8700
8800
8900
9000
Payoff from Put Brought
Bank Nifty
9100
25
Strike Price
Break Even
Bank Nifty 8900
8800
9300
Example: Sell 1 Call Option*
Spot Price
Premium Pay-off
Exercise Pay-off
Bank Nifty
8800
9000
9200
9400
9600
12500
12500
12500
12500
12500
0
-2500
-10000
-15000
-20000
12500
10000
2500
-2500
-7500
Premium 500
15000
10000
0
5000
-5000
-10000
-15000
-20000
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Payoff from Call Sold
Bank Nifty
94
00
95
00
96
00
97
00
98
00
25
Sell ITM Call Strike Price
Call Premium
Break Even
Bank Nifty 8900
8800
500
8900
Example: Sell 1 ITM Call Option and Buy 1 OTM Call Option*
Spot Price
9000
Call Premium 400
Buy OTM Call Strike Price
Pay-off fromITM Call Sold
Pay-off fromOTM Call Brought
Bank Nifty
8500
8700
8900
9100
9300
12500
12500
10000
5000
0
-10000
-10000
-10000
-7500
-2500
2500
2500
0
-2500
-2500
15000
10000
0
5000
-5000
-10000
-15000
-20000
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Call BroughtPayoff from Call Sold
95
00
96
00
82
00
25
Buy ITM Call Strike Price
Puf Premium
Break Even
Bank Nifty 8900
9100
500
9000
Example: Buy 1 ITM Put Option and Sell 1 OTM Put Option*
Spot Price
8800
Put Premium 400
Sell OTM Put Strike Price
Pay-off fromITM Put brought
Pay-off fromOTM Put sold
Bank Nifty
8600
8800
9000
9200
9400
0
-5000
-10000
-12500
-12500
5000
10000
10000
10000
10000
5000
5000
0
-2500
-2500
15000
10000
0
5000
-5000
-10000
-15000
-20000
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Put SoldPayoff from Put Brought
95
00
96
00
82
00
25
Buy Call Strike Price
Call Premium
Break Even
Bank Nifty 8900
8900
200
8700
Example: Buy 1 ITM Put Option and Sell 1 OTM Put Option*
Future Price
Pay-off onFutures
Pay-off fromCall brought
Bank Nifty
8300
8500
8700
8900
9100
15000
10000
5000
0
-5000
-5000
-5000
-5000
-5000
0
10000
5000
0
-5000
-5000
15000
10000
0
5000
-5000
-10000
-15000
-20000
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Call BroughtPayoff from Futures Sold
95
00
96
00
82
00
20000
25
Put Call Strike Price
Put Premium
Break Even
Bank Nifty 8900
8800
200
9100
Example: Sell 1 Futures and Sell 1 Put Option*
Future Price
Pay-off fromFutures
Pay-off fromPut sold
Bank Nifty
8500
8700
8900
9100
9300
10000
5000
0
-5000
-10000
-2500
2500
5000
5000
5000
7500
7500
5000
0
-5000
15000
10000
0
5000
-5000
-10000
-15000
-20000
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Put SoldPayoff from Futures Sold
95
00
96
00
82
00
20000
9500 -15000 5000 -10000
25
Call and Put Strike Price
Call Premium
Lower BEP
Bank Nifty 8900
9000
100
8700
Example: Buy 1 Call and Buy 1 Put Option at same strike
Spot Price
200
Upper BEP 9300
Put Premium
Pay-off fromCall brought
Pay-off fromPut sold
Bank Nifty
8300
8500
8700
9000
9300
-2500
-2500
-2500
-2500
5000
12500
7500
2500
-5000
-5000
10000
5000
0.00
-7500
0.00
15000
10000
0
5000
-5000
-10000
-15000
-200008
30
0
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Put BroughtPayoff from Call Brought
95
00
96
00
82
00
9600 12500 -5000 7500
10000 22500 -5000 17500
20000
25
Call and Put Strike Price
Call Premium
Lower BEP
Bank Nifty 8900
9000
100
8700
Example: Buy 1 Call and Buy 1 Put Option at same strike
Spot Price
200
Upper BEP 9300
Put Premium
Pay-off fromCall brought
Pay-off fromPut sold
Bank Nifty
8000
8400
8700
9000
9300
2500
2500
2500
2500
-5000
-20000
-10000
-2500
5000
5000
-17500
-7500
0
7500
0
9600 -12500 5000 -7500
10000 -22500 5000 -17500
10000
0
5000
-5000
-10000
-15000
-20000
83
00
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Put SoldPayoff from Call Sold
95
00
96
00
82
00
25
Call Strike Price
Call Premium
Lower BEP
Bank Nifty 8900
9000
200
8500
Example: Buy 1 Call and Buy 1 Put Option at different strike
Spot Price
8800
Upper BEP 9300
Put Strike Price
Pay-off fromCall purchase
Pay-off fromPut purchase
Bank Nifty
8000
8300
8500
9000
9300
-5000
-5000
-5000
-5000
2500
17500
10000
5000
-2500
-2500
12500
5000
0
-7500
0
9500 7500 -2500 5000
9800 15000 -2500 12500
10000
0
5000
-5000
-10000
-15000
-200008
30
0
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Put broughtPayoff from Call brought
95
00
96
00
82
00
Put Premium 100
15000
25
Call Strike Price
Call Premium
Lower BEP
Bank Nifty 8900
9000
200
8500
Example: Sell 1 Call and Sell 1 Put Option at different strike
Spot Price
8800
Upper BEP 9300
Put Strike Price
Pay-off fromCall sold
Pay-off fromPut sold
Bank Nifty
8000
8300
8500
9000
9300
5000
5000
5000
5000
-2500
-17500
-10000
-5000
2500
2500
-12500
-5000
0
7500
0
9500 -7500 2500 -5000
9800 -15000 2500 -12500
10000
0
5000
-5000
-10000
-15000
-200008
30
0
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from Put broughtPayoff from Call brought
95
00
96
00
82
00
Put Premium 100
15000
Bank Nifty 8900Spot Price
25
8900Sell ATM Call Strike
300* 2Call Premium
8700Buy ITM Call Strike
500Call Premium
9100Buy OTM Call Strike
200Call Premium
9000Upper BEP
8800Lower BEP
Pay-off from1 ITM Call brought
Pay-off from2 ATM Calls Sold
Bank Nifty Pay-off from1 OTM Call brought
8600 -12500 15000 -5000 -25008700 -12500 15000 -5000 -25008800 -10000 15000 -5000 08900900091009200
-7500-5000-2500
0
1500010000
50000
-5000-5000-5000-2500
25000
-2500-2500
10000
0
5000
-5000
-10000
-15000
-20000
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from 1 OTM Call BroughtPayoff from 2 ATM Calls Sold
15000
20000 Payoff from 1 ITM Call Brought
Bank Nifty 8900Spot Price
25
8900Buy ATM Call Strike
300* 2Call Premium
8800Sell ITM Call Strike
500Call Premium
9100Sell OTM Call Strike
200Call Premium
9000Upper BEP
8800Lower BEP
Bank Nifty
8600 12500 -15000 5000 25008700 12500 -15000 5000 25008800 10000 -15000 5000 08900900091009200
750050002500
0
-15000-10000
-50000
5000500050002500
-25000
25002500
10000
0
5000
-5000
-10000
-15000
-200008
40
0
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Net Payoff
Bank Nifty
94
00
Payoff from 1 OTM Call SoldPayoff from 2 ATM Calls Brought
15000
Payoff from 1 ITM Call Sold
Bank Nifty
25
Bank Nifty
89008700
5808800
5209000
4209100
38090808720
84008600872088009000908092009400
-14500-14500-14000-12000
-7000-5000-20003000
13000130001300013000
800060003000
-2000
1050010500105001050010500
85005500
500
-9500-9500-9500-9500-9500-9500-7000-2000
-500-500
020002000
0-500-500
10000
0
5000
-5000
-10000
-15000
-20000
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Bank Nifty
94
00
15000
95
00
96
00
Net Payoff Payoff from “D” BroughtPayoff from “C” SoldPayoff from “B” SoldPayoff from “A” Brought
8900
8700580
8800520
9000420
9100380
90808720
Bank Nifty
Bank Nifty
25
84008600872088009000908092009400
14500 14500 14000 12000
7000 5000 2000-3000
-13000-13000-13000-13000
-8000-6000-30002000
-10500-10500-10500-10500-10500
-8500-5500
-500
95009500950095009500950070002000
500500
0-2000-2000
0500500
10000
0
5000
-5000
-10000
-15000
-20000
84
00
85
00
86
00
87
00
88
00
89
00
90
00
91
00
92
00
93
00
Bank Nifty
94
00
15000
95
00
96
00
Net Payoff Payoff from “D” SoldPayoff from “C” BroughtPayoff from “B” BroughtPayoff from “A” Sold20000
Example: Buy 1 Call Strike 8800, Sell 1 Call Strike 9200, Buy 1Put Strike 9200 & Sell Put Strike 8800*
400
8900
250
500
350
Bank Nifty
25
Bank Nifty
87008800890090009100920093009400
-10000 -10000
-7500 -5000 -2500
0.00 25005000
62506250625062506250625037501250
0-2500-5000-7500
-10000-12500-12500-12500
62508750875087508750875087508750
25002500250025002500250025002500
brought brought
12500
7500
2500
-7500
-12500
84008200 8600 8800 9000 9200 9400 9600
Net Payoff Payoff from Put SoldPayoff from Put BroughtPayoff from Call SoldPayoff from Call Brought
Bank Nifty
brought brought
8400860088009000920094009600
13000 13000 13000
8000 3000
-2000 -7000
-7500-7500-7500-7500-7500-2500 2500
-400010006000
11000160001600016000
1000-4000-9000-9000-9000-9000-9000
2500250025002500250025002500
8900 523
302
638
362 8800
9200
9200
8800
Bank Nifty
25
Bank Nifty
9800
Bank Nifty
Net Payoff Payoff from Put BroughtPayoff from Put SoldPayoff from Call BroughtPayoff from Call Sold
12000
16000
8000
4000
0
-12000
-16000
-8000
-4000
084008200 8600 8800 9000 9200 9400 9600
