Can you please explain this a bit in detail ? Does it mean go short on usdinr and buy the pe 50p apart... at expiry go short on next month contract ans buy another pe ..
edit after read shorting fut with ATM PE
There is no detail in this friend... there is no strategy here... I just mentioned in response to a post that I am active in currency trading... whatever I am doing now is for my own benefit...
Still I am explaining here what I am doing and why...
I am personally benefited with the devaluation of INR... as a bigger chunk of my business income comes from US... so I gain while USDINR goes up...
Now what I am doing is shorting USDFut with ATM PE at every 50 paisa... I getting at least 40-50paisa premium now... normally in cool market we used to get 25-30...
If USD drops 50 paisa I exit both the positions... generally booking 25-30 paisa... if it advances I am hedged till 50 paisa... will again short @ +50paisa level...
Also options are booked below 7-8paisa... or just it expires...
On expiry leftover lots rolled over to next series... rollover premium of around 25-30 paisa adds to the shorting price...
While rolling over I calculate the average shorting price and if I get some premium (minimum 19-20 paisa) in ITM options those options of respective quantity shorted...
By doing this my average shorting price moves up every series... by accumulating the ATM PE Premiums, rollover premiums and occasional profit booking (in case of USD drops and I book profit)...
In a year (12 months) about 3.5-4INR gets added to the shorting price of every lot by rollover premium and ATMPE short... and if USD stays volatile profit booking also adds to this...
I started working with overseas clients back in 2008 with a conversion rate of around 44-45... now it is 73... 29INR increased... it is 10 years... so 10 x 3(minimum) gets to 30INR...
PLEASE NOTE: THIS HELPS ME PERSONALLY BECAUSE OF MY BUSINESS... this is not a strategy... of course if you earn in USD and conversion rate makes a difference in your income then you also can think of this