PETRONET Iron Butterfly [4.4:1 Profit:Loss]

2020년 7월 12일

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!