Sunday, 31 October 2021

SBI option chain

Weekly option strategy based on  SBIN option chain 

My view is bullish for SBIN. There are various ways long trade can be initiated.

1. Buying cash 

2. Buying SBI future 

3. Creating a bull spread 

4. Creating ratio spread with delta hedging

SBIN Option Chain

SBI-optionchain

SBIN IV Chart 

SBIN-IVchart

 source:sensibull

SBIN 20 days realized volatility 25  and ATM IV from the option chain 49

SBIN result is due on 3rd Nob 2021

I expect volatility will increase till the result declaration

I may buy 520 CE and sell 540 CE

Strategy P&L on the expiry day i.e. 25th Nov

Margin required  60000

Maximum profit  20000

Maximum loss     10000

Let us analyze how the strategy will perform under various conditions on 3rd Nov 9:00 AM


 

No change in IV, SBI close at 520, the strategy will give Rs. 2500 profit per lot

No change in IV SBI close at 480, the strategy will give Rs.3800 loss per lot

 I will book the strategy once it gives profit around. 

 Update on 1st November 

I created a 1:2 call ratio spread today . I bought 520 call and sold 560 call

Margin blocked 2.3 lakh
Brake even 598 

Please click the link to read SBI share price and options strategy discussion because I am long in cash market: SBI share price and trade plan.


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