BankNifty Options Strategies

1 BankNiftyOptionsStrategiesBank NiftyProfit, when: Bank Nifty closes above thestrike price on expiryLoss, when: Bank Nifty closes below thestrike price on expiryBank Nifty25890088005009300 BankNifty -12500 0-12500-12500 2500-10000-12500 10000- 2500-12500 15000 250088009000920094009600-12500 20000 7500150001000005000-5000-10000-15000-200 0084008500860087008800890090009100920093 0094009500960097009800 Payoff from Call Brought Bank NIftyBullish on Bank NiftyProfit, when: Bank Nifty does not go down and option expires unexercisedLoss, when: Bank Nifty goes down and option exercised150001000005000-5000-10000-1500 0-20000800081008200830084008500860087008 800890090009100 Payoff from Put Sold Bank NIftyBank Nifty25890088004008400 BankNifty80008200840086008800 Example.

2 Sell 1 Call Option*900010000100001000010000100001000 0-20000-15000-10000-50000010000500005000 1000010000 Pay-off fromITM Call brought Pay-off fromOTM Call SoldBankNifty85008200840086008800-12500- 12500-10000-5000010000100001000075002500 -2500-250002500250025 ITM Call Strike PriceCall Premium OTM Call Strike Price Call Premium Break Even Bank Nifty89008700500900040089001500010000050 00-5000-10000-15000-20000820083008400850 086008700880089009000910092009300 Net Payoff Bank NIfty940095009600 Payoff from Call Sold Payoff from Call BroughtPay-off fromPut soldPay-off fromPut purchaseBankNifty86008800900092009400050 00100001250012500-5000-10000-10000-10000 -10000-5000-500002500250025 Sell OTM Put Strike PricePut Premium Buy OTM Put Call Strike Price Put Premium Break Even Bank Nifty8900880050085004009000 Example: Buy 1 ITM Call Option and Sell 1 OTM Call Option* 150001000005000-5000-10000-15000-2000082 0083008400850086008700880089009000910092 009300 Net Payoff Bank NIfty9400 Payoff from Put BroughtPayoff from Put Sold25 Strike Price Premium Break Even Bank Nifty890088002009100 Example.

3 Buy 1 Future and 1 Put Option* Future Price Pay-off fromFutures LongPay-off fromPut option broughtBankNifty86008800910092009500-750 0-250050007500150000-5000-5000-5000-5000 -7500-75000250010000150001000005000-5000 -10000-15000-200008400850086008700880089 00900091009200930094009500 Net Payoff Bank NIfty9600 Payoff from Put BroughtPayoff from Futures Long25 Future Price Strike Price Break Even Bank Nifty8900890091008700 Example: Exisiting 1 Long Future and Sell 1 OTM Call Option* Spot Price Pay-off fromFutures LongPay-off fromCall soldBankNifty85008600870088008900-10000- 7500-5000-2500050005000500050005000-5000 -2500025005000 Premium 200150001000005000-5000-10000-15000-2000 0820083008400850086008700880089009000910 092009300 Net Payoff Bank Nifty9400 Payoff from Call SoldPayoff from Futures Long9500960025 Put Strike PricePut PremiumBreak Even Bank Nifty890088001508850 Example.

4 Buy 1 Future and 1 Put Option Contract and Sell 1 Call Option Contract* Call Strike Price9000 Call Premium200 Future Price Pay-off fromFutures LongBankNifty86008800885090009300-7500-2 500-12502500100001250-3750-3750-3750-375 0-1250-1250037503750 Pay-off fromCall soldPay-off fromPut brought5000500050002500-2500150001000005 000-5000-10000-15000-2000082008300840085 0086008700880089009000910092009300 Net Payoff Bank Nifty9400 Payoff from Put BroughtPayoff from Futures Long9500960097002000025000 Payoff from Call Sold25 Put Strike PricePut PremiumBreak Even Bank Nifty890088003009100 Example: Sell 1 OTM Put Option and Buy 1 OTM Call Option* Spot Price Pay-off fromPut soldPay-off fromCall broughtBankNifty870089009100930095005000 7500750075007500-10000-10000-7500-250025 00-5000-250005000100009000 Call Premium400 Call Strike Price150001000005000-5000-10000-15000-20 0008300840085008600870088008900900091009 2009300 Net Payoff Bank Nifty9400 Payoff from Call BroughtPayoff from Put Sold9500960097002000025 Strike PricePremium Break Even Bank Nifty890088004008400 Example.

5 Buy 1 Put Option* Spot Price Pay-off fromPay-off fromBankNifty80008200840086008800-10000- 10000-10000-10000-1000020000150001000050 0001000050000-5000-100009000-100000-1000 0150001000005000-5000-10000-15000-200008 0008100820083008400850086008700880089009 000 Payoff from Put BroughtBank Nifty910025 Strike Price Break Even Bank Nifty890088009300 Example: Sell 1 Call Option* Spot Price Premium Pay-off Exercise Pay-off BankNifty8800900092009400960012500125001 250012500125000-2500-10000-15000-2000012 500100002500-2500-7500 Premium 500150001000005000-5000-10000-15000-2000 0840085008600870088008900900091009200930 0 Payoff from Call SoldBank Nifty9400950096009700980025 Sell ITM Call Strike PriceCall PremiumBreak Even Bank Nifty890088005008900 Example.

6 Sell 1 ITM Call Option and Buy 1 OTM Call Option* Spot Price 9000 Call Premium400 Buy OTM Call Strike PricePay-off fromITM Call SoldPay-off fromOTM Call BroughtBankNifty850087008900910093001250 0125001000050000-10000-10000-10000-7500- 2500250025000-2500-2500150001000005000-5 000-10000-15000-200008300840085008600870 0880089009000910092009300 Net Payoff Bank Nifty9400 Payoff from Call BroughtPayoff from Call Sold95009600820025 Buy ITM Call Strike PricePuf PremiumBreak Even Bank Nifty890091005009000 Example: Buy 1 ITM Put Option and Sell 1 OTM Put Option* Spot Price 8800 Put Premium400 Sell OTM Put Strike PricePay-off fromITM Put broughtPay-off fromOTM Put soldBankNifty860088009000920094000-5000- 10000-12500-1250050001000010000100001000 0500050000-2500-2500150001000005000-5000 -10000-15000-200008300840085008600870088 0089009000910092009300 Net Payoff Bank Nifty9400 Payoff from Put SoldPayoff from Put Brought95009600820025 Buy Call Strike PriceCall PremiumBreak Even Bank Nifty890089002008700 Example.

7 Buy 1 ITM Put Option and Sell 1 OTM Put Option* Future PricePay-off onFuturesPay-off fromCall broughtBankNifty830085008700890091001500 01000050000-5000-5000-5000-5000-50000100 0050000-5000-5000150001000005000-5000-10 000-15000-200008300840085008600870088008 9009000910092009300 Net Payoff Bank Nifty9400 Payoff from Call BroughtPayoff from Futures Sold9500960082002000025 Put Call Strike PricePut PremiumBreak Even Bank Nifty890088002009100 Example: Sell 1 Futures and Sell 1 Put Option* Future PricePay-off fromFuturesPay-off fromPut soldBankNifty850087008900910093001000050 000-5000-10000-2500250050005000500075007 50050000-5000150001000005000-5000-10000- 15000-2000083008400850086008700880089009 000910092009300 Net Payoff Bank Nifty9400 Payoff from Put SoldPayoff from Futures Sold950096008200200009500-150005000-1000 025 Call and Put Strike PriceCall PremiumLower BEPBank Nifty890090001008700 Example.

8 Buy 1 Call and Buy 1 Put Option at same strikeSpot Price 200 Upper BEP9300 Put PremiumPay-off fromCall broughtPay-off fromPut Payoff Bank Nifty9400 Payoff from Put BroughtPayoff from Call Brought950096008200960012500-50007500100 0022500-5000175002000025 Call and Put Strike PriceCall PremiumLower BEPBank Nifty890090001008700 Example: Buy 1 Call and Buy 1 Put Option at same strikeSpot Price 200 Upper BEP9300 Put PremiumPay-off fromCall broughtPay-off fromPut soldBankNifty800084008700900093002500250 025002500-5000-20000-10000-250050005000- 17500-75000750009600-125005000-750010000 -225005000-175001000005000-5000-10000-15 000-200008300840085008600870088008900900 0910092009300 Net Payoff Bank Nifty9400 Payoff from Put SoldPayoff from Call Sold95009600820025 Call Strike PriceCall PremiumLower BEPBank Nifty890090002008500 Example.

9 Buy 1 Call and Buy 1 Put Option at different strikeSpot Price 8800 Upper BEP9300 Put Strike PricePay-off fromCall purchasePay-off fromPut purchaseBankNifty80008300850090009300-50 00-5000-5000-5000250017500100005000-2500 -25001250050000-7500095007500-2500500098 0015000-2500125001000005000-5000-10000-1 5000-20000830084008500860087008800890090 00910092009300 Net Payoff Bank Nifty9400 Payoff from Put broughtPayoff from Call brought950096008200 Put Premium1001500025 Call Strike PriceCall PremiumLower BEPBank Nifty890090002008500 Example: Sell 1 Call and Sell 1 Put Option at different strikeSpot Price 8800 Upper BEP9300 Put Strike PricePay-off fromCall soldPay-off fromPut soldBankNifty80008300850090009300 5000500050005000-2500-17500-10000-500025 002500-12500-50000750009500-75002500-500 09800-150002500-125001000005000-5000-100 00-15000-2000083008400850086008700880089 009000910092009300 Net Payoff Bank Nifty9400 Payoff from Put broughtPayoff from Call brought950096008200 Put Premium10015000 Bank Nifty8900 Spot Price 258900 Sell ATM Call Strike300* 2 Call Premium8700 Buy ITM Call Strike 500 Call Premium9100 Buy OTM Call Strike200

10 Call Premium9000 Upper BEP 8800 Lower BEPPay-off from1 ITM Call broughtPay-off from2 ATM Calls SoldBankNiftyPay-off from1 OTM Call brought8600-1250015000-5000-25008700-125 0015000-5000-25008800-1000015000-5000089 00900091009200-7500-5000-250001500010000 50000-5000-5000-5000-250025000-2500-2500 1000005000-5000-10000-15000-200008400850 086008700880089009000910092009300 Net Payoff Bank Nifty9400 Payoff from 1 OTM Call BroughtPayoff from 2 ATM Calls Sold1500020000 Payoff f