Very new to Options. Please reply this very basic question :
I wish to trade Options based on my directional or view on levels. Examples :
Say at the start of the derivative month, Nifty is 7800, and my view is that Nifty may correct but will not close below 7500. During the month Nifty goes down to 7560 and recovers and crosses 7900.
a. If I bought a 7900 call at the start of the Month, how should I hedge it ?
b. I sold a 7500 PUT at the start of the month, how should I hedge it?
Thanks.
I wish to trade Options based on my directional or view on levels. Examples :
Say at the start of the derivative month, Nifty is 7800, and my view is that Nifty may correct but will not close below 7500. During the month Nifty goes down to 7560 and recovers and crosses 7900.
a. If I bought a 7900 call at the start of the Month, how should I hedge it ?
b. I sold a 7500 PUT at the start of the month, how should I hedge it?
Thanks.