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Future & Option Hedging Strategy |
hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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Post: #136  Posted: Sun Jan 10, 2010 9:07 am Post subject: |
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Hi
I have been giving stock positional calls since 22 December 2009 in 'Stocks' columns of this Forum. The calls given from 22 - 31 December 2009 have generated profits ranging from 7 to 15 %. Please check out at 'Stocks Positional Calls' Thread.
Please don't use my stock calls for intraday trading.
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anand512
White Belt
Joined: 26 Jun 2009
Posts: 109
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| Post: #137 Posted: Sun Jan 10, 2010 9:38 pm Post subject: option strategy risk |
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| anand512 wrote: | Hi
Sir,
I am doing shorting option since last six months. meanwhile today i gone through your calls and strategy in this thread.
I found that the volatility is playing an important role in deciding the premium of option. If the VIX increases the premium increases inspite of time decay.So if we can take position wen VIX is near 30-35 , then there will be more beneficial.
One thing is not clear from your call that buying and selling NF above 5300 and below 5250 respectively with small Stoploss. I think the stoploss will hit for no's of time.Instead of that if we should write either call or put of current series with reasonable stop. Than it may work.
Pl. clarify the logic behind buying NF above 5300 and selling below 5250.
In jan. series i have shorted 5200 ce at 162 and 5400 pe at 163.
Pl. give your valuable comments and views.
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #138 Posted: Mon Jan 11, 2010 6:41 pm Post subject: Re: option strategy risk |
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| anand512 wrote: | | anand512 wrote: | Hi
Sir,
I am doing shorting option since last six months. meanwhile today i gone through your calls and strategy in this thread.
I found that the volatility is playing an important role in deciding the premium of option. If the VIX increases the premium increases inspite of time decay.So if we can take position wen VIX is near 30-35 , then there will be more beneficial.
One thing is not clear from your call that buying and selling NF above 5300 and below 5250 respectively with small Stoploss. I think the stoploss will hit for no's of time.Instead of that if we should write either call or put of current series with reasonable stop. Than it may work.
Pl. clarify the logic behind buying NF above 5300 and selling below 5250.
In jan. series i have shorted 5200 ce at 162 and 5400 pe at 163.
Pl. give your valuable comments and views.
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Hi anand
I don't even know what VIX means. I just know 50 points no hedge area, above or below that area I am either short or long. Why I am short or long in nifty future, I request you to please go through this entire thread from last page to this page. Read every aspect very carefully. I have also uploaded spreadsheet of my last trades. Please go through it in detail. Can you please share the actual trades (date-wise/event-wise) so that we can compare how both the plans work in terms of benfit cost ratio.
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #139 Posted: Mon Jan 11, 2010 6:47 pm Post subject: |
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Hi
Profit calculation of 1st hedging position of Jan.2010 :
Position taken on 05 January 2010
Sold Options of Feb.2010 Series and Hedging to be done by Nifty Future of January 2010 Series.
Premium of 5100 Call = 260
Premium of 5400 Put = 223
Total Premium = 483
Nifty Future Points gained = 0
Points gain at the time of selling both options = 523
Net gain in points 523 - 483 + 0 = 40 Points
Target : 200 Points by 21-25 January 2010.
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #140 Posted: Mon Jan 11, 2010 8:44 pm Post subject: |
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| I have updated 'Stocks Positional Calls' thread. Also visit that area as calls given there are now blasting. |
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #141 Posted: Tue Jan 12, 2010 6:28 pm Post subject: |
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Hi
Profit calculation of 1st hedging position of Jan.2010 :
Position taken on 05 January 2010
Sold Options of Feb.2010 Series and Hedging to be done by Nifty Future of January 2010 Series.
Premium of 5100 Call = 226
Premium of 5400 Put = 249
Total Premium = 475
Nifty Future Points gained = 5250 - 5209 = 41
Points gain at the time of selling both options = 523
Net gain in points 523 - 475 + 41 = 89 Points
Target : 200 Points by 21-25 January 2010.
Note : Hope all the members have gone short at 5250 and also covered the lost points during the whipsaws experienced today and few days before. I also lost 25 points (20 points today and 5 points earlier) due to these whipsaws and have recovered all the points in last Nifty Future Hedging by going short at 5250 with double lots of Nifty Future.
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sabikhanuja
White Belt
Joined: 05 Mar 2009
Posts: 5
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| Post: #142 Posted: Tue Jan 12, 2010 10:02 pm Post subject: |
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hai hans,
i have seen ur post today............now getting it......just want to ask one thing.....  .....as u told we have to hold.......both sold options till 3rs week of jan or by the time any one option price comes to 50rs....... now want to know that as u sold NF today at 5250 ..........r u holding ur short NF or exit...mean to say ......With options we have to hold Nf or Nf for intraday..............what i thought was NF is for Hold with Options..........untill it again back to 5250 or by the time we get good points(profit).....thanks............ hope u reply soon.......... |
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #143 Posted: Wed Jan 13, 2010 7:23 am Post subject: |
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| sabikhanuja wrote: | hai hans,
i have seen ur post today............now getting it......just want to ask one thing..... .....as u told we have to hold.......both sold options till 3rs week of jan or by the time any one option price comes to 50rs....... now want to know that as u sold NF today at 5250 ..........r u holding ur short NF or exit...mean to say ......With options we have to hold Nf or Nf for intraday..............what i thought was NF is for Hold with Options..........untill it again back to 5250 or by the time we get good points(profit).....thanks............ hope u reply soon.......... |
Hi sabikhanuja, You are right, we have to hold NF until it is below 5250 and will only exit from this when we get good (around 200) points. When we will exit, we will exit from the entire pack that is both the options and Nifty Fut. In the present case, we are holding Nifty short.
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anand512
White Belt
Joined: 26 Jun 2009
Posts: 109
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| Post: #144 Posted: Wed Jan 13, 2010 10:26 pm Post subject: Re: option strategy risk |
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[quote="hansraj456"] | anand512 wrote: | | anand512 wrote: | Hi
Sir,
I think there is a overnight risk in NF buy or sell.
for example if we short nifty below 5250 and closing is 5240. but the next day NF opening is 5290-5300. then 50-60 ponts loss will come.
Even as per your strategy , no.'s of times stoploss may hit. So,we can not say that there is 0 % loss.
If i am wrong pl. explain me in detail.
Regards
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mahesh765
White Belt
Joined: 16 Oct 2008
Posts: 22
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| Post: #145 Posted: Thu Jan 14, 2010 4:28 am Post subject: hansraj |
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hi hansraj!
great strategy !!! will this work mini -lots too ?is there any other means following this strategy with replacing futures with something else .like calls or minilots or something else ?thanks alot |
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #146 Posted: Thu Jan 14, 2010 5:48 am Post subject: Re: option strategy risk |
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[quote="anand512"] | hansraj456 wrote: | | anand512 wrote: | | anand512 wrote: | Hi
Sir,
I think there is a overnight risk in NF buy or sell.
for example if we short nifty below 5250 and closing is 5240. but the next day NF opening is 5290-5300. then 50-60 ponts loss will come.
Even as per your strategy , no.'s of times stoploss may hit. So,we can not say that there is 0 % loss.
If i am wrong pl. explain me in detail.
Regards
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Hi Anand
Have u read the entire thread. It is given there in such situation how to recover the loss and we have recovered it day before yesterday. Please read the entire thread where every situation has already been discussed in detail. However, there are chances of loss for a moment, but it can not be prolonged or until the hedging position is at hold. We are following the rules for recovering the lost points.
Thanks
Last edited by hansraj456 on Thu Jan 14, 2010 6:17 am; edited 1 time in total |
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #147 Posted: Thu Jan 14, 2010 5:49 am Post subject: Re: hansraj |
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| mahesh765 wrote: | hi hansraj!
great strategy !!! will this work mini -lots too ?is there any other means following this strategy with replacing futures with something else .like calls or minilots or something else ?thanks alot |
No it will not work. |
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #148 Posted: Thu Jan 14, 2010 6:11 am Post subject: |
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Hi
Profit calculation of 1st hedging position of Jan.2010 :
Position taken on 05 January 2010
Sold Options of Feb.2010 Series and Hedging to be done by Nifty Future of January 2010 Series.
Premium of 5100 Call = 240
Premium of 5400 Put = 221
Total Premium = 461
Nifty Future Points gained = 5250 - 5243 = 07
Points gain at the time of selling both options = 523
Net gain in points 523 - 461 + 07 = 69 Points
Target : 200 Points by 21-25 January 2010.
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #149 Posted: Thu Jan 14, 2010 12:05 pm Post subject: |
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Hi All
These days lot of issues are being discussed at my 'Stocks Positional Calls' thread in Stocks columns. You can read that and learn few basics on selection of stocks for investment.
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hansraj456
White Belt
Joined: 17 Nov 2009
Posts: 370
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| Post: #150 Posted: Thu Jan 14, 2010 8:58 pm Post subject: |
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Hi
Profit calculation of 1st hedging position of Jan.2010 :
Position taken on 05 January 2010
Sold Options of Feb.2010 Series and Hedging to be done by Nifty Future of January 2010 Series.
Premium of 5100 Call = 246
Premium of 5400 Put = 207
Total Premium = 453
Nifty Future Points gained = 0
Points gain at the time of selling both options = 523
Net gain in points 523 - 453 + 0 = 70 Points
Target : 200 Points by 21-25 January 2010.
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