TL Credit Spread
TLE Option hedging Directional Credit Spread Strategy. The Strategy Involves Selling ATM Options and Buying OTM Option for the preferred Direction.The Strategy has Defined Target and Stoploss. Strategy Explanation(Illustration) If Bullish on NIFTY.Nifty Price 24500.CE Call option of 24500 ATM will be sold.CE Price assumption 150.CE Call option of 24800 OTM will be bought as per rules for say 40. Max premium Collected is Rs 110.Target and Stoploss will be defined as per rules.The Strategy Gives positive return when trade performs in our direction or Nifty moves sideways. The Strategy Gives negative return only when the Trade goes against our Direction. Performance Of the Strategy will be updated after every month end after CA audit or as per PARRVA. Ideal for Low to Medium Risk Profile Trader/Investor.
