The stock has been range bound between 250 and 280 since June. Without any external triggers, we expect it to trade within this range until July expiry
Iron Butterfly is a neutral strategy whereby we profit as long as the stock remains within the strategy range
Petronet Iron Butterfly https://i.ibb.co/dJLXt4q/Strategy.png:
Buy 1Lot 250 Put 30Jul ~ 6.25
Sell 1Lot 265 Put 30Jul ~ 15.45
Sell 1Lot 265 Call 30Jul ~ 5.25
Buy 1Lot 280 Call 30Jul ~ 2.2
Breakeven at expiry : 252.8, 277.2
Which means we profit as long as Petronet closes anywhere between 252.9 and 277.2 at expiry. Therefor, use these 2 levels as stoploss and close out respective individual strategy leg if the stock breaks out or breaks down
Credit Received : 36750
Max Profit at Expiry : 36750
Max Loss at Expiry : 8250
Max Profit:Loss 4.4:1
Strategy Diagram and other details present in the image link attached https://i.ibb.co/dJLXt4q/Strategy.png
This is just my 2 cents on the stock. Please trade cautiously and at your own risk
Happy Trading!
Iron Butterfly is a neutral strategy whereby we profit as long as the stock remains within the strategy range
Petronet Iron Butterfly https://i.ibb.co/dJLXt4q/Strategy.png:
Buy 1Lot 250 Put 30Jul ~ 6.25
Sell 1Lot 265 Put 30Jul ~ 15.45
Sell 1Lot 265 Call 30Jul ~ 5.25
Buy 1Lot 280 Call 30Jul ~ 2.2
Breakeven at expiry : 252.8, 277.2
Which means we profit as long as Petronet closes anywhere between 252.9 and 277.2 at expiry. Therefor, use these 2 levels as stoploss and close out respective individual strategy leg if the stock breaks out or breaks down
Credit Received : 36750
Max Profit at Expiry : 36750
Max Loss at Expiry : 8250
Max Profit:Loss 4.4:1
Strategy Diagram and other details present in the image link attached https://i.ibb.co/dJLXt4q/Strategy.png
This is just my 2 cents on the stock. Please trade cautiously and at your own risk
Happy Trading!
