Day Trading Stocks & Futures

[nil.nik.9777]

Query : when taking a swing trading suppose I would like to cover my risk before my position becomes profitable.Which is the best way of hedging it.

Say for example today I want to go long futures of tatamotors of at 312 and I have a target of 350. what would be the best way of hedging my risk.
1. Buy a 310 Put.
2. Sell 310 Call.
3. Sell Next Months Future.

Buy a 300 put . This way you maximum risk will be 12 points in worst case and premium paid will be less compared to 310 put

 

[marimuthu13]

In my view , dont hedge. if you are looking at TM to reach around 350..just sell 330 PUT .. with proper SL is on tata motors future

 

[MaxX]

My latest strangle on the july series with a bullish bias written yesterday. Today with fall in VIX and market higher saw good M2M gains

 

[nil.nik.9777]

My latest strangle on the july series with a bullish bias written yesterday. Today with fall in VIX and market higher saw good M2M gains

Wondering how much margin required to write this much quantity.

 

[MaxX]

Wondering how much margin required to write this much quantity.

About 26 lakhs.. Been trading from 2010

 

[pannet1]

About 26 lakhs.. Been trading from 2010

have you been writing only short strangles all these years (or) you employ different strategies.

if yes, what happened on the surgical strike day

 

[MaxX]

have you been writing only short strangles all these years (or) you employ different strategies.

if yes, what happened on the surgical strike day

An increase in VIX or rapid rise/fall does affect position.. I adjust according to my view (based on long time frame TA) and the losses are made up when the VIX falls back down.. not every day is profitable.. If market is too volatile (like when we were going up rapidly at the top this year) I just exit and watch for a few days.. till I see the VIX starting to go down again.

 

[SarangSood]

have you been writing only short strangles all these years (or) you employ different strategies.

if yes, what happened on the surgical strike day

An increase in VIX or rapid rise/fall does affect position.. I adjust according to my view (based on long time frame TA) and the losses are made up when the VIX falls back down.. not every day is profitable.. If market is too volatile (like when we were going up rapidly at the top this year) I just exit and watch for a few days.. till I see the VIX starting to go down again.

Do you also manage the delta of your strangle?

 

[vikas2131]

LUPIN: First reversal sign...

BHARATFIN: New high before the merger.

GLENMARK: Revival..... good breakout with very good volumes

 

[MaxX]

Do you also manage the delta of your strangle?

Yes I do.. adjust it whenever position moves according to my bias. Also I am not married to a setup like short strangle. Nowadays observing lots of highly leveraged writing on expiry day for BNF, leading to spikes which squeezes them out. So am exploring joining the party of buying options to squeeze out the expiry writers which has been going on off late.