Dealing with Sudden Market Crack

There is rising tension in Kashmir and it means if suddenly anything happens it may lead to a flash crack in the market. Here is one idea to benefit that kind of event.

https://unofficed.com/options-calculator/?save_id=5c7329b08ada8942201317

Buy 10500 PE at 27.35 - 1 lot
Sell 10300 PE at 11.75 - 2 lots

Assuming the fall will be momentarily and will allow us to benefit for the same if the profit booking is timed correctly.

payoff-graph

Let’s deploy this time bomb. What is your thought?

Looks a good strategy but current expiry prices seems to be far away. Which expiry are we targeting at?

Its not for current expiry. Guess from the premium. Its next’s. :slight_smile: Prices changed since I wrote. This is current’s https://unofficed.com/options-calculator/?save_id=5c73a8aea6183625081665

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