Short Nf @ 5770- 5860= -90
Buy 5700 Ce @ 155- 230= 75
Total MTM - -15 points.
Now wait for 5900-5930 level in Nf,
We will book out there 5700 ce & buy 5900 Ce near to 155 or below it.
@ Ganpat, this Detailed post is for U.
After booking 5700 Ce we can get nearly 100 points it will be our Profit & our actual investment of 155
for 5700 Ce shifted to 5900 ce.
From here if nf rises further our 5900 Ce will start give reward.
If Nf falls from here our Shorts start getting rewarded.
Now ur question of MTM, I already declare to have a investment of 50000 out of which we only uses 34000 & remaining balance for MTM of Nf.
No Nf averaging will be done. Pnly single lot position will be held up till expiry.
If up to expiry Nf remains range bound between 5700-5900 than only we will in Loss,but we not book Loss & Rollover our strategy to Nxt Month.
I already stated that This strategy works best in Trending market Only.
If any further query can ask me.