Friday, October 15, 2010

Update on Nf option Hedging strategy

Nifty Option Hedging strategy


Sold NF Nov 6100 Ce @ 280-227=53

Sold Nf Nov.6400 PE @ 215-259=-43

Short Nf @ 6250-6197=53

Total Mtm- 53-43+53=63 Points

 Target 200 points in 15-20 days.
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1 comment:

  1. RDPOctober 15, 2010 at 10:03 PM

    Hi Musti

    I have been reading your option strategy updates in JN blog with great interest. I like your strategy. Can you please explain the rules of this strategy?

    I believe the following: 1. Enter when market is volatile
    2. Short CE with strike price INR 100 below the CMP
    3. Short PE with strike price INR 200 above the CMP
    4. Hedge CE with NF at approx. 200 points above CE strike, if market goes up.
    5. Hedge PE with NF at approx. 150 points below PE strike, if market dips.

    Kindly inform if I have understood correctly. My e-mail id is rdpdgrp@gmail.com
    Thanks a lot

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