Peace of Mind with Collar
The collar trade allows you execute trades at very low risk and still generate good returns. In certain situations it can be a no risk trade or even generate a guaranteed return. Correct application of this trade could generate descent returns and will require little maintenance.
SBIN
Buy 1 lot SBIN futures @ 2433
Buy 1 lot SBIN Put Oct 2400 strike @ 50.30
Short 1 lot SBIN Call Oct 2550 strike @ 25.75
Cost = 2458 + expenses
Maximum risk = 25 points + expenses
Maximum gain = 92 points - expenses (Target 2550)
Margin required = 60000
Will monitor this and make adjustments if necessary in due course.
The collar trade allows you execute trades at very low risk and still generate good returns. In certain situations it can be a no risk trade or even generate a guaranteed return. Correct application of this trade could generate descent returns and will require little maintenance.
SBIN
Buy 1 lot SBIN futures @ 2433
Buy 1 lot SBIN Put Oct 2400 strike @ 50.30
Short 1 lot SBIN Call Oct 2550 strike @ 25.75
Cost = 2458 + expenses
Maximum risk = 25 points + expenses
Maximum gain = 92 points - expenses (Target 2550)
Margin required = 60000
Will monitor this and make adjustments if necessary in due course.