Wednesday, March 30, 2011

Nf Long Term Hedging Strategy

Short Nf Ap @ 5770- 5825= -55

Buy 5700 Ce @ 155- 200= 45

Total Loss = -10

Now how to earn from it is the question in every one Mind.

We will cut our 5700 Ce near or above 5900.

At that time 5700 Ce should trade near to 230-250 range.

We get nearly 80-100 points from it.

Nxt we going to buy 5900 Ce at that time which will be trading near to 110-130 level & hold it for nxt 200 point or till expiry.

Every month Nf moves nearly 400 points near to its expiry.
Either up or down or in one side like in the month of March.

So our target is to earn a minimum of 10-15% every month on our capital employed.

This Strategy has an investment of nearly 34000.

And if we get a return of 15% over it without watching market regularly can be said a handsome retrurn in my View.

Viewers Coments are welcome on my Plan up.

2 comments:

  1. Hi Musti,

    1.I am shocked and distressed to know about the passing away of Shri.S.N.Vaish.My condolences

    2.One reader Charu has raised a doubt two days back.Hope you would reply to him.If one does not want to interact with their blog readers,then they have to write diary.

    3.You say..quote
    Nxt we going to buy 5900 Ce at that time which will be trading near to 110-130 level & hold it for nxt 200 point or till expiry.
    unquote
    Here should we short another lot of NF.?
    You see what we have shorted already would be at abt 250 points loss!(we would have already invested the profit from 5700CE in to 5900CE!
    Thanks

    ReplyDelete
  2. Sir,

    Requesting you to add my mail ID to your YM to receive your timely guidance during market hours ...

    xritto@yahoo.com

    RITTO

    ReplyDelete