Long position in nf

Hi friends,
I have taken a long position at April NF 5766 on 2 April 2013. I thaught of squaring it up last week with a loss of 150-200 points, but I did not do it.
Now, I wonder whether I should close it at the first opportunity next week or should hedge it by buying a put (say 5500PE )
I will be happy to receive suggestions from members.
Thanks and regards,
gmt 900

Loosing position taking hedging is not a good idea. Exit position and wait for next opportunity.

Dear Gmt900

A 5500 put is in the actual given situation in your market an otm option. This means that the market first has to move further down until your option gets first at the money and then in the money. During that move, which not is very big, your already existing loss will even get bigger. In case the market reaches ever levels under 5500, the profit the put would start to make at beginn would not be enough to counter your ongoing and raising losses on the future.

You also will stay in loss if market now starts to swing in a range between 5500 and 5700, as your option will lose through time decay but your future would recover some losses.

What ever you are going to do: Calculate the profit you could do on one side against the loss of the other side. This is a pure math and risk game and those numbers will quickly tell you if what ever idea you have will work or not.

Good trading / DanPickUp