Here we will be going through Long Iron Fly Option Selling Strategy. In this strategy if the emerge out of certain Range then there will be profit. In this strategy Two Options are purchased and two options are sell.
Example: We are doing to do Long Iron Fly Option Strategy in Nifty on June Monthly Expiry. At the moment Nifty is at 18700 on 23rd June 2023, we are buying Nifty one at 18700 CE and buying 18700PE. After that we are selling 18850 Nifty CE and selling Nifty 18550 Nifty PE. Buying and selling are done in One lot Only. Once, the market comes out of the range 18589.0-18811.0, then the profit will start. Maximum Profit is Rs 1938 and Maximum Loss is Rs 5562.