Today Spot price of Banknifty is 35496.65
If i buy and sell 25 March Expiry Options as follows
buy 35000 CE and 36000 PE
Sell 35100 CE and 35900 PE
The strategy shows a probability of profit 99.5 % with a maximum profit 7% on a margin of nearly 35500/-
The screenshot of strategy builder is shown here
Pls discuss this strategy and guide …whether this kind of almost sure profit with zero loss chances are possible in real life?
What is the catch here and what points to be kept in mind before entering this combination?
This is probably because of lower liquidity or incorrect closing price in opstra. You will not find such scenarios in live market
1 Like
Not possible because opstra considered last traded price i.e. LTP in the strategy builder whereas your orders will be filled at ask-bid prices during actual trading. For liquid strikes there is not much of a difference between ask-bid and LTP. But the 2 of the 4 strikes you have selected i.e. 35100 and 35900 must be illiquid. There will be big difference between the said prices hence you will lose some money as soon as you take the trade.
All the best.
1 Like
