Future & Option Hedging Strategy

travi

Well-Known Member
#13
@suryameet25
Ok Scott, one question, what is the SL strategy on the short strangle?
 
#14
When you are selling make sure price for both options is above 200. We should get more than 400 for selling these options.

One should exit the trade completely once price on either side option reach to 50. There is no more juice left in that..
 

travi

Well-Known Member
#15
I was asking about Stop loss, not profit booking.

1. Anyway, what do you mean by price above 200?
2. Did you know that if IV jumped even by a mere 5%, 5-7 days of profit can be wiped out even if nifty was in that middle range?

Anyway, I've mentioned here and in some posts earlier, most retail traders do not have the capital required to write options given its risks. Ideally they're written very early.
Thread for selling options is now a frequent topic here.
 
#18
So, Friends this strategy is for a return of 20-40% monthly with investment of Rs.75000

Right Now Nifty Spot is trading at 8273.

Sell Call & put for next month

Sell 8100 FEB Call
Sell 8400 FEB Put

Buy Nifty Future if above 8295 and hold till it reach back to 8295.
Sell Nifty Future If below 8255 and hold till if reach again to 8255.

In this way you will always make profit in every market condition.

In Sideways market both premiums will loss their value and you will gain points.
In Bull market you will make more with Nifty Buy + Sell Put
In Bear market you will make money with Nifty Sell + Sell Call

Target here is for 200 points.

Note: We have to exit only when we have 200 points profit..

So, No matter where nifty is trading.. Only exist Nifty future if it reach again to your Buy/Sell price..
Excellent strategy. I will try to execute this coming Monday and will make some adjustment as the series progress.
 

rocky01

Active Member
#19
Hi All,

I was searching for some hedging strategies for nifty future and I came to know a best strategy for it.
"Hedge Nifty options with Future"

This is the best strategy I have found till now. But it was posted before 7 years ago and then no updates from the admin after that.

So, I want to re-start that discussion here.
Kindly explain it more deeply.i want to understand it throughly.
 

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