30% returns with Delta hedging options

[toughard]

@Mukul Sharma

I don't think that there is any chance of loosing money

yes its a favorable probability but little hypothetical!

please consider interest on margin

that's keen did you selected trading after a conducting strong equal time opportunity exercise???
okay but what is interest on margin that one should calculate an RD rate? FD Rate? Pawn broker rate?
or RISK FREE % RATE which will be totally in RISK after indexing :clap:
what is the source of the money which is in the market? from saving or lending?

BTW what is the DELTA of this AVERAGED positions??

 

[mukuldunnu]

@Mukul Sharma




yes its a favorable probability but little hypothetical!



that's keen did you selected trading after a conducting strong equal time opportunity exercise???
okay but what is interest on margin that one should calculate an RD rate? FD Rate? Pawn broker rate?
or RISK FREE % RATE which will be totally in RISK after indexing :clap:
what is the source of the money which is in the market? from saving or lending?

BTW what is the DELTA of this AVERAGED positions??

that's keen did you selected trading after a conducting strong equal time opportunity exercise???

I could not get what do u mean by that
but by ( interest on margin being use in position ) I mean to say that how one have raise fund for trading there may be individuale view on that

one can consider FD rate or saving rate .What I am considering is between

1.5-2 % monthly which one can earn almost risk free and also on the other
hand brokers also charge 15-18 % PA for out standing positions and also many mature Investors are quiet happy with 2 % monthly

One more thumb rule that at least one must earn interest on capital deployed in any business

also I will give give u delta of this position but right now my net is breaking link

Ok it's working now So as per myamit last updated on 11th March he is having following positions

Short CE 7500 x 250 @ 201.2 (Avg) Delta 0.3661*250= - 91.525 According to nse data as on 02-may-14

Short PE 5000 x 750 @ 71.92 (avg) delta 0.0537*750= + 40.275

So the delta of position is -51.25 which is far from perfect hedge

Plz correct me if wrong or missing something

Mukul Sharma

 

[toughard]

that's keen did you selected trading after a conducting strong equal time opportunity exercise???

I could not get what do u mean by that
but by ( interest on margin being use in position ) I mean to say that how one have raise fund for trading there may be individuale view on that

one can consider FD rate or saving rate .What I am considering is between

1.5-2 % monthly which one can earn almost risk free and also on the other
hand brokers also charge 15-18 % PA for out standing positions and also many mature Investors are quiet happy with 2 % monthly

One more thumb rule that at least one must earn interest on capital deployed in any business

also I will give give u delta of this position but right now my net is breaking link

Ok it's working now So as per myamit last updated on 11th March he is having following positions

Short CE 7500 x 250 @ 201.2 (Avg) Delta 0.3661*250= - 91.525 According to nse data as on 02-may-14

Short PE 5000 x 750 @ 71.92 (avg) delta 0.0537*750= + 40.275

So the delta of position is -51.25 which is far from perfect hedge

Plz correct me if wrong or missing something

Mukul Sharma

-51.25 DELTA sounds uncomfortable to me....
only myamit can tell us about the delta's that you have given....