If I sold a naked call and put in banknifty at far OTM strike - how should I hedge it?

#1
Banknifty July 30 expiry.
If I sold a call at 24000 strike price which is far OTM ...how should I hedge/protect it ..because it just a short naked call.
Same question about short sell of 20000 PE put - how should I hedge it ?
 

sanju005ind

Investor, Option Writer
#2
Banknifty July 30 expiry.
If I sold a call at 24000 strike price which is far OTM ...how should I hedge/protect it ..because it just a short naked call.
Same question about short sell of 20000 PE put - how should I hedge it ?
Since you are naked. To hedge you have to wear clothes.
 

travi

Well-Known Member
#4
ITM kareed lo sir... bull call spread...
Dr Bhai, that will work but it becomes and expensive debit spread.

He has asked a similar question in another thread and doesn't want to buy which is not possible.
He can just decide his max risk and buy a further OTM CE like 24100, 24200 and it will effectively still be a credit spread.
Bear call spread.

Same for puts.
And if it's a 4 legged strategy, then it becomes an iron Condor

From Tapatalk
 

marimuthu13

Well-Known Member
#6
Dr Bhai, that will work but it becomes and expensive debit spread.

He has asked a similar question in another thread and doesn't want to buy which is not possible.
He can just decide his max risk and buy a further OTM CE like 24100, 24200 and it will effectively still be a credit spread.
Bear call spread.

Same for puts.
And if it's a 4 legged strategy, then it becomes an iron Condor

From Tapatalk
As he wanted have no loss trade, he may be needed 8 leg in one trade
 

Vmaster369

Active Member
#7
when you have money for margin why do option ?
just buy futures and hold

Options you will loose ...
buyer of option trading Account gets empty
seller of option :-- Whole your bank account including your family member all be empty 1 day lol

in futures atleast we normal guys have chance to win as it can be carry forwarded once share price go down and u can carry forward as long as u have money.
 
#10
Dr Bhai, that will work but it becomes and expensive debit spread.

He has asked a similar question in another thread and doesn't want to buy which is not possible.
He can just decide his max risk and buy a further OTM CE like 24100, 24200 and it will effectively still be a credit spread.
Bear call spread.

Same for puts.
And if it's a 4 legged strategy, then it becomes an iron Condor

From Tapatalk
Before reading your post - that is exactly what I did for both naked put and call --bought further OTM call/put
 

Similar threads

Zerodha – Open Paperless Account

Open online account with Zerodha. Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. Intraday High leverage with MIS, CO and BO.

Name:Phone:
Email:City:
State:
Are you a day trader?