Friends we are going to enter in Our regular Option hedging strategy in this week.
Level to enter
Short Nf 6400 Pe Dec.-210-230
Short Nf 6100 Ce Dec.-270-300
Total MTM recived- Nearly 480 points
Short Nf Below 6250
Long Nf Above 6300
Enter in this strategy only when Nf future trade in the range of 6260-6290.
Dont make any position before the above said levels.
Margin required for it nearly 75K.
Target 200 points in 15-20 days.
Now our some friends have some queries I will try to solve it out.
Yt are the posible scenerios after we enter in it.
1. We go short @ 6250 & Nf opens above 6300 nxt day so yt to do in that situation.
Just reverse ur trade in between 9.15-9.3 at the lowest level found,this is the worst scenerio & this hapened to me only 2-3 times in my trading history of such kind of Strategies.
Now yt abt the loss,so the loss will be covered by our written CE & PE means we have to wait up to our target level of 200 points.
2. We go long @ 6300 & Nf opens below 6250,the same method has to be applied as we did in the above case.
3. If Nf remains in the range of 6250-6300- It is the most difficult time to trade when Nf agin & again comes near to go long or short level.
To avoid whipsaws one can take 20-25 points leverage means go long above 6320-25
or go short below 6230-25.
Dont enter any trade before 9.30 A.M. & after 3.00P.M.
If further any question Plz free to ask me
Dear Musti1780,
ReplyDeleteI want to enter the trade. I will be doing it for the first time.Is it o. k. to short 6100ce
@325 now?And wait for 6400pe to reach the levelAbove 210?
Aniruddha
No Aniruddh enter both trade at same level.
ReplyDeleteIf U enter it now & market rises up than U will be in trouble,so whenever U want to trade enter both of them simultaneously.
Thank you musti1780
ReplyDeleteI will wait for your trade details
ReplyDeleteHi Dear , I bought 6300 puts at 90. will it work in favour of me ? what should i do to hedge my position?
ReplyDeleteDr.Harsad,I just see ur coment.
ReplyDeleteU can hold with a Sl of 6320NS.
Or book out near 6250 & reenter near 6310 leve.
I have entered this trade as follows:
ReplyDeleteShort Nf 6400 Pe Dec: -203
Short Nf 6100 Ce Dec: -318
Total MTM recived = Nearly 521 points
Went Long in Nifty Futures at 6300
I have placed a SL for Nifty Futures to reverse the Long to Short at 6250.
I have entered this trade as follows
ReplyDeleteShort NF 6400 PE Dec @ 208
Short NF 6100 CE Dec @ 294
MTM 502
Shorted Nf 6400 PE Dec.@211
ReplyDeleteShort Nf 6100 CE Dec@288
MTM 499.
Should I wait to take position in NF till it triggers 6249 or 6301 ?.Please advice me