nifty option strategies

Zero-Cost Collar: Option Strategy

Zero-cost collar option strategy is designed to give you a bit of extra profit while also capping downside risk. In this strategy, an investor is selling a call option with a strike price above the current stock price as well as buying a put option with the strike price at or below the current price of your stock holding. This strategy can be utilized in a stock that has upside potential. MAX profit = Strike price of Short call-Purchase price of underlying- commission paid.
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Option Strategy: Buying Index Calls

This simplest strategy involves the purchase of index call option. It is implemented when option traders believe that the underlying index level will rise significantly above the call strike price within a certain period of time. The risk is limited to the price paid for index call option and profit achieved is unlimited in this strategy. Profit = Index settlement value- Index call strike price-Premium paid. Break even point= Index call strike price + premium paid. Read about Option strategies: Bull Put Spread Bull Call Spread
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