delta neutral hedging

hello

i would like to know about delta neutral hedging .

could any one train me for that

i read some books but needs to have practice also

please also suggest books which can be practical enough for me to trade

also suggest any professional who can teach me

thanks

sumit bhatia

What books do you read about delta neutral hedging and what is delta neutral hedging for you?

Any example or definition from your side ?

I heard from Dreamgains, they are giving options tips in delta neutral hedging.
They told me this hedging should squareoff within three to five days

Dear HARIVEL

I checked this side ( Dreamgains) and I have seen that they have an incredible bad reputation ( WOT: Web of trust ). So would not recommend any body to use such bad links.

If you do not know WOT: It is an add on for Firefox Browsers which shows how trustworthy a link is. If you see red circles, your bells should start ringing.

WOT has even safed me in the past to invest money in a company, which we later found out is cheating there customers in a very bad way.

http://i41.tinypic.com/52xjqo.png

DanPickUp

hello
delta neutral is a strategy where one can earn money using options and futures .

the delta needs dynamic hedging and i am new to the concept .

although i have downloaded some material on it but needs advice of expert to clarify my doubts

thanks

sumit bhatia

Dear Sumit

Ok, I see your definition. Very good so far.

Now: Delta neutral is just a definition how you do some thing. As you can trade delta neutral with options on futures, stock or ETF's, we now know that you have question for some kind of strategy which is done with options on futures.

There are many strategies to trade delta neutral. I easily could give you six or seven ways to do so.

Next question then is: About which strategy do we talk or is your question just of general nature about delta neutral trading?

If so, what are your doubts? Where are the problems you face or what makes you unsure about it?

And by the way: What did you download or what are the names of the books you did read? If I we can see that, that would give a better idea about what you already know about it.

DanPickUp

Hello Dan,

Nice to see that you're here to help.

Could you please help me with Delta neutral strategy with Nifty options. What I know is that Nifty future is considered to have 1 Delta (or -1 if shorted) and one should buy put/call that makes delta of overall position neutral.

What I can not figure out here is how to exit or change this poosition. Also it would be nice if you can point out good reference material explaining delta neutral positions and strategies.

Regards,

Dear Myamit

I can give information to a certain point. If this point is reached, I am no more willing to give more as such information is no where free any where in the world. Even in India you have to pay for good education and the same is in trading. I am not here to sell any thing, but you have to understand that there is a limit of information which is free and the rest is not even sold. Anyway: Let's see how far we can go.

- Part one so far seems to be understood from you, at least in the post you write.

- In the second part of your post you wrote: "What I can not figure out here is how to exit or change this position".

Ok: Now my question to you:

Could you show a whole trade you do ( It must not be a live trade ) step by step. This would show the whole way of your decision making and as you make a mistake in the flow of decisions, it would be much more easy to find out where you do so.

DanPickUp

Hi

I now had a chat with a person which I consider a very nice guy. He informed me that you not can trade options and futures around the hours in India.

In my opinion, that is a big obstacle to come over in delta neutral hedging.

If you want to be a professional hedger, it is best when you can trade around the hours.

As you not even can place pre market orders in Indian for more advanced delta neutral hedging strategies, I am out of the game.

Good luck and good trading

DanPickUp

i have downloaded the bible of option strategies and trading options to win ( wiley )
3)
get rich with options .
would like to tell you that i have not started reading any book .
thnx

sumit bhatia