Bull Condor – When Upside Needs Discipline, Not Aggression

Bull Condor – Controlled Upside Within a Defined Range (Illustrative Example:

| Nov 2024 | Historical Price Reference) Market View Bullish. This strategy is used when COFORGE is expected to rise but expire within a defined range, rather than deliver an aggressive breakout. In this illustrative scenario, the expectation is for price to stabilise between 1900–1940 by Dec 2024. The Trade (Illustrative | Hypothetical Premiums) • Buy COFORGE 1800 Call @ ₹240 • Sell COFORGE 1900 Call @ ₹160 • Sell COFORGE 1940 Call @ ₹110 • Buy COFORGE 2000 Call @ ₹70 Net Premium Paid: ~₹40 (Strike selection is based on historical price zones. Premiums are illustrative, not exact, and used only to explain the concept.) Breakeven • Lower Breakeven: 1800 + Net Premium Paid • Upper Breakeven: 2000 − Net Premium Paid Max Profit • 1900 − 1800 − Net Premium Paid • Achieved if COFORGE expires between 1900 and 1940 Max Loss • Limited to Net Premium Paid • Occurs if COFORGE expires below 1800 or above 2000 Premium & Margin • Premium: Usually paid • Margin: Required Effect of Time & Volatility • Time decay benefits the position only if price stays between sold strikes • Impact of implied volatility is relatively low Pros / Cons • ✔ Limited risk, better capital efficiency than naked calls • ✖ Loss if price moves outside the defined range Quick Logic Check (Important) • Outer strikes (1800 & 2000) cap risk • Inner strikes (1900 & 1940) define the profit zone • Time decay works in your favour only inside the 1900–1940 range 📌 Disclaimer: This content is for information only and not investment advice. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. AI may have been used for grammatical and sentence-structure refinement. Please consult a SEBI-registered advisor before making any investment decisions.