option stratagy

Hi ,
I have read somewhere on traderji about protective put strategy and reverse of it means selling future.. and buying call..
but I am unable to locate that post again..
Can anybody help..

Any more clues?
Anything specific u want to know about those two strategies?

Yes,
As we initiat protactive put and market goes down then we dont book loss in protactive put but we intiate protactive call...
ffurther process was in that post ...so I was searching for that...

The use of protective put/call strategies are like this:

1. Long Future (or stock) Bullish
In the event of some -ve news coming, you will BUY PUTS, incase, market goes down, then your puts will try and cover losses on your long position.
Use delta and other greeks to know the quantity required to fully hedge.

Alternatively, instead of buying puts, you can SELL CALLs.

The above setup if reversed will be for a bearish view when you are short on Futures.
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Now, the above protective strategies try to be direction neutral for a predetermined period in which you expect uncertainty.
So there is no need to exit the put or call, bcos then you will be on one leg which can hurt if mkt goes against that position.
Instead, you would hold the options and let them expire during the uncertain period.

Thanks for your quick reply...
But still I dont get what I want...
But appreciate you...
Thanks once again...

I guess options are used for two purposes only... one is for hedging index future position... and the other is... for eating premiums... to me second one works great