Nifty – Long Calendar Straddle

Sell Nifty Feb 5500 CE and 5500 PE at 120 and Buy Nifty March 5500 CE and 5500 PE at 320. Net premium out flow is around 200. This is an excellent strategy for around 14 days and can yield around 200 points premium in profit. So this gives a Risk Reward of around 1:1. The break even is at 5300 and 5700, however the B.E.P is calculate just adding the premium. This is an excellent strategy as the time decay is adjusted against the selling of Feb 5500 Options and the swings in Nifty will be captured by the Long 5500 March options.