The strategy’s provisional cost, at Thursday’s closing prices, is Rs 2.1 a share (3,500 shares equal one lot). Against this the maximum gain is Rs 7.9, implying a risk-reward of almost four times. Two out-of-themoney (OTM) options are sold to reduce the upfront cost of the purchased at-the-money (ATM) call.
– Stocks-Markets-Economic Times
