Friday, November 12, 2010

Update on Nf Option Hedging Strategies

Option Hedging Strategy (First)

Short 6100 Ce @ 290-261=29

Short 6400 Pe @ 210-223=-13

Short Nf @ 6250-6235=15

Total MTM- 29-13+15=31 points

Target 200 points in 15-20 days

Option Hedging Strategy (Second)

Short Nf @ 6320-6235=85

Short 6100 Pe @ 93-97=-4

Total MTM= 85-4=81points

2 comments:

  1. Musti,

    In your first strategy, you say

    Total MTM- 29-13+15=31 points

    Why are you not including the 50 point loss from Taking a long Position in NF @6300 that became a Short Position @6250. I feel this -50 has been missed. Please clarify

    ReplyDelete
  2. @ Nifty,
    Sorry for late reply as I am not online.
    I clearly mention to cut longs at ur entry level means @ 6300 & go short @ 6250.
    We are not going to hold any long or short beyond our entry level.
    If again Nf comes to 6250 we have to cut our shorts.
    Plz read guidlines again & again before entering in thi stype of Option hedging,it will create damage to ur A/C.

    ReplyDelete