indiTraders - Forum for the Active Indian Trader  

Go Back   indiTraders - Forum for the Active Indian Trader > Markets > Futures & Options

Futures & Options Futures & Option Markets

DPonline
Reply
 
Bookmark and Share LinkBack Thread Tools Display Modes
  #1 (permalink)  
Old 04-05-2017, 10:36 AM
rajputz's Avatar
rajputz rajputz is offline
Alampanah™
 
Join Date: Feb 2010
Location: Una
Posts: 691
Thanks: 304
Thanked 1,289 Times in 525 Posts
rajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to behold
Default Calculating Max Loss and Profit on Future and Option Purchase at Same time

I need help.

I want to buy Infy @944 and at the same time a PE of 940 at 18.

I do not know how to calculate my max loss and max profit. Can anyone help?

I am doing calculations like this.



__________________
Regards

rajputz

My Blog - https://katwalassetmanagement.blogspot.in

Last edited by rajputz; 04-05-2017 at 10:44 AM.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to rajputz For This Useful Post:
  #2 (permalink)  
Old 04-05-2017, 05:51 PM
Robin's Avatar
Robin Robin is offline
....
 
Join Date: Mar 2009
Posts: 640
Thanks: 975
Thanked 2,128 Times in 668 Posts
Robin will become famous soon enoughRobin will become famous soon enough
Default

Originally Posted by rajputz View Post
I need help.

I want to buy Infy @944 and at the same time a PE of 940 at 18.

I do not know how to calculate my max loss and max profit. Can anyone help?

I am doing calculations like this.




try more with different price at expiration of infy say 850,870,890,910,930,950,970,990,1000.

u will get the ans .
__________________
"Just when you think you are smart, the market will show you just how really dumb you are."

YM : robin_malihan
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to Robin For This Useful Post:
  #3 (permalink)  
Old 04-05-2017, 05:51 PM
JJ's Avatar
JJ JJ is offline
.
 
Join Date: Mar 2009
Posts: 7,016
Thanks: 20,049
Thanked 28,320 Times in 6,739 Posts
JJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond repute
JJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond reputeJJ has a reputation beyond repute
Default

That's a covered synthetic call, using a covered call calculator will do the job.
__________________
In a fight between you and the markets, back the markets.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 3 Users Say Thank You to JJ For This Useful Post:
  #4 (permalink)  
Old 04-05-2017, 06:59 PM
rajputz's Avatar
rajputz rajputz is offline
Alampanah™
 
Join Date: Feb 2010
Location: Una
Posts: 691
Thanks: 304
Thanked 1,289 Times in 525 Posts
rajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to behold
Default

Originally Posted by Robin View Post
try more with different price at expiration of infy say 850,870,890,910,930,950,970,990,1000.

u will get the ans .

Simple answer please
__________________
Regards

rajputz

My Blog - https://katwalassetmanagement.blogspot.in
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to rajputz For This Useful Post:
  #5 (permalink)  
Old 04-05-2017, 07:37 PM
Robin's Avatar
Robin Robin is offline
....
 
Join Date: Mar 2009
Posts: 640
Thanks: 975
Thanked 2,128 Times in 668 Posts
Robin will become famous soon enoughRobin will become famous soon enough
Default

Originally Posted by rajputz View Post
Simple answer please

to calculate your maximum loss I need to know the what is your brokerage and which state you are from and whats your cost of fund .
__________________
"Just when you think you are smart, the market will show you just how really dumb you are."

YM : robin_malihan
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to Robin For This Useful Post:
  #6 (permalink)  
Old 04-05-2017, 07:44 PM
rajputz's Avatar
rajputz rajputz is offline
Alampanah™
 
Join Date: Feb 2010
Location: Una
Posts: 691
Thanks: 304
Thanked 1,289 Times in 525 Posts
rajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to beholdrajputz is a splendid one to behold
Default

Originally Posted by Robin View Post
to calculate your maximum loss I need to know the what is your brokerage and which state you are from and whats your cost of fund .


Assume there is none. Or Max 200 on 2 lots. Are the calculations of excel right? According to me, max pain is when the price is at the money on expiry. I have calculated that way.
__________________
Regards

rajputz

My Blog - https://katwalassetmanagement.blogspot.in
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to rajputz For This Useful Post:
  #7 (permalink)  
Old 04-05-2017, 07:47 PM
Robin's Avatar
Robin Robin is offline
....
 
Join Date: Mar 2009
Posts: 640
Thanks: 975
Thanked 2,128 Times in 668 Posts
Robin will become famous soon enoughRobin will become famous soon enough
Default

Originally Posted by rajputz View Post

Assume there is none. Or Max 200 on 2 lots. Are the calculations of excel right? According to me, max pain is when the price is at the money on expiry. I have calculated that way.

if 200 for 2 lots , does your broker charge brokerage on expire ?
__________________
"Just when you think you are smart, the market will show you just how really dumb you are."

YM : robin_malihan
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following User Says Thank You to Robin For This Useful Post:
  #8 (permalink)  
Old 04-05-2017, 07:48 PM
Robin's Avatar
Robin Robin is offline
....
 
Join Date: Mar 2009
Posts: 640
Thanks: 975
Thanked 2,128 Times in 668 Posts
Robin will become famous soon enoughRobin will become famous soon enough
Default

and where is the excel u are refraining to .
__________________
"Just when you think you are smart, the market will show you just how really dumb you are."

YM : robin_malihan
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 2 Users Say Thank You to Robin For This Useful Post:
  #9 (permalink)  
Old 05-05-2017, 01:45 AM
novicetrader's Avatar
novicetrader novicetrader is offline
Regulars
 
Join Date: Aug 2015
Posts: 956
Thanks: 1,338
Thanked 1,320 Times in 730 Posts
novicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to beholdnovicetrader is a splendid one to behold
Default

Originally Posted by rajputz View Post
I need help.

I want to buy Infy @944 and at the same time a PE of 940 at 18.

I do not know how to calculate my max loss and max profit. Can anyone help?

I am doing calculations like this.






Your maximum loss is the PE price - (Strike price-Future price ) i.e. 17.95 - ( 940 -939.9 ) * 500 = 8925 /-
Profit potential is "theoritically" unlimited once the future goes above 957.85, thats your break even point.

The above calculation is based on my chart with prices in it, but if we go by your prices, maximum loss is 21.7*500=10850, so your sheet formula is correct.
Breakeven Point = Purchase Price of Underlying + Premium Paid, i.e.944+17.7 =961.7 , above this point your profit should start
The above strategy is called as "Protective Put " and is a bullish strategy, its same as buying a CALL with equal payoff and risk.

N.B : all the above calculation excludes transaction cost and charges, kindly include those to arrive at the real figure
__________________
WILD

Last edited by novicetrader; 05-05-2017 at 02:55 AM.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 2 Users Say Thank You to novicetrader For This Useful Post:
  #10 (permalink)  
Old 05-05-2017, 09:11 AM
amoghsd's Avatar
amoghsd amoghsd is offline
Regulars
 
Join Date: Jan 2016
Posts: 175
Thanks: 215
Thanked 405 Times in 173 Posts
amoghsd has a spectacular aura aboutamoghsd has a spectacular aura aboutamoghsd has a spectacular aura aboutamoghsd has a spectacular aura aboutamoghsd has a spectacular aura aboutamoghsd has a spectacular aura about
Default

Originally Posted by rajputz View Post
I need help.

I want to buy Infy @944 and at the same time a PE of 940 at 18.

I do not know how to calculate my max loss and max profit. Can anyone help?

I am doing calculations like this.




As per your strategy you will have Fix and maximum loss of 22 points at and below 940 level.

Above 940 your loss keep on decreasing and will be breakeven(no profit no loss) at 962 level.

Above 962 your maximum profit zone

Amogh
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
The Following 2 Users Say Thank You to amoghsd For This Useful Post:
Reply

indiTraders - Forum for the Active Indian Trader > Markets > Futures & Options


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are On


DPonline

All times are GMT +5.5. The time now is 07:08 PM.


vBulletin Copyright by vBulletin

Content Relevant URLs by vBSEO 3.3.2