Future & Option Hedging Strategy

Discussion in 'Introductions' started by suryameet25, Jan 5, 2017.

  1. suryameet25

    suryameet25 Active Member

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    https://zerodha.com
     
  2. suryameet25

    suryameet25 Active Member

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  3. travi

    travi Well-Known Member

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    @suryameet25
    Ok Scott, one question, what is the SL strategy on the short strangle?
     
  4. suryameet25

    suryameet25 Active Member

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    When you are selling make sure price for both options is above 200. We should get more than 400 for selling these options.

    One should exit the trade completely once price on either side option reach to 50. There is no more juice left in that..
     
  5. travi

    travi Well-Known Member

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    I was asking about Stop loss, not profit booking.

    1. Anyway, what do you mean by price above 200?
    2. Did you know that if IV jumped even by a mere 5%, 5-7 days of profit can be wiped out even if nifty was in that middle range?

    Anyway, I've mentioned here and in some posts earlier, most retail traders do not have the capital required to write options given its risks. Ideally they're written very early.
    Thread for selling options is now a frequent topic here.
     
  6. mycall

    mycall New Member

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    Guys... my only suggestion to option traders is either use options to hedge your index future position by option buy... or eat premium by selling OTM options... the second one works best if you have discipline and sound risk management strategy...
     

  7. dipendu

    dipendu Member

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    Just see how many times nifty future gone above 8295 and below 8295.
     
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