Monday, January 25, 2010

Nifty trades for25-jan-2010

Gm friends
Sorry for late posting as some net problems.
Today I will disclose my option strategy .
Short Nf 4800 Ce @275 (Feb)
Short Nf 5100 PE @200 (Feb)
we get 475 points.
Now we will hedge these short positions with Nf futures
Every time when Nf goes above 5000 we wil long & evey time Nf falls below 4950 we will short in between 4950-5000 no action required.
After long if Nf agian comes down to 5000 levels we will have to square off our position similarly in short position If Nf comes above 4950 levels we have to cut our position.
We will try to get full 200 points with this strategy up till 5-9 feb.
I hope u all understand this heding strategy.

4 comments:

  1. CAN YOU ELABORATE THE STRATEGY

    THNX & REGARDS

    ReplyDelete
  2. Musti, i am waiting for your clarification. Hope, you may mail me.
    Thanks

    jay

    ReplyDelete
  3. Musti

    Thanks for your help.I shall send a mail to you shortly.

    Meanwhile you have mentioned quote:
    Short Nf 4800 Ce @275 (Feb)
    Short Nf 5100 PE @200 (Feb)
    we get 475 points.
    unquote
    as your option strategy.Is there a specific reason for selecting these two lots?For example can one short 4600CE and 5200PE?If yes what is the nifty future range to be maintained?

    Thanks again

    ReplyDelete