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Future & Option Hedging Strategy
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Author Future & Option Hedging Strategy
cpsinghvi
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Joined: 21 Sep 2009
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Post: #91   PostPosted: Fri Jan 01, 2010 3:07 pm    Post subject: regarding future options Reply with quote

can anybody teach the future options strategy.
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hansraj456
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Joined: 17 Nov 2009
Posts: 370

Post: #92   PostPosted: Fri Jan 01, 2010 4:51 pm    Post subject: Reply with quote

Hi All


Thanks Friends. I never thought my way of investment will receive such an overwhelming response.

My special thanks to Site Admin Team who have provided such a nice platform to discuss.

We are still celebrating New Year in our office today and will also be busy in a party today evening. I will post all the replies tomorrow. Please bear with me.

Thanks
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smeetrajesh
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Joined: 04 Sep 2009
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Post: #93   PostPosted: Fri Jan 01, 2010 5:37 pm    Post subject: Reply with quote

hansaraj have nice to see giving so good calls how you can generate
please give delievery calls on RSI basis.what your suggesition for delievery trading
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harshkapoor3
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Joined: 19 Feb 2009
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Post: #94   PostPosted: Sat Jan 02, 2010 11:56 am    Post subject: Reply with quote

Hello Hansraj
I will square up both my position till 3rd week, and enter into new strategy at that time, which will be specifically ur two different strike prices strategy with 300 points gap between the two.
I was going through psrao coments for you, to trade only in futures as ur loosing money in options, but i thing urs is a hedgeing stategy and if u play only in nifty, it will become naked, hence i dont think that will work.
Any ways u promised to tell ur swing trading stategy, i am too waithing for the same, since i too have a particular strategy for entering and exiting stocks and nifty, i too would like to discuss with you ragarding the same.\\
As per my work nifty is strong above 5220 and weak below 5130.
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hansraj456
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Post: #95   PostPosted: Sat Jan 02, 2010 1:34 pm    Post subject: Reply with quote

Hi psrao

sorry for delay in reply. Please don't say sorry again. As I have explained time and again that till November I was making one position per month. and My profit was around 300 points per month. You said I lost in options and gained in NF. It is not like that. You know I sold 1 lot each of call or put. From the time of selling options, nifty has to move either side, up or down. In this way, premium of either put or call will increase. By going short in Nifty future, I have to ensure that whatever option gains premium, I must get similar or more number of points from other source i.e. Nifty future. So if one option is gaining, similar or more number of points are ensured by nifty future and other option is shedding points very fast, and that's my profit. I don't mind, if i get profit from nifty future, or whichever option. My aim is at the end what number of points i get as profit. Now from December I have started making two positions in a month, the aim is to get 200 points per position. I have been successful in first position of Dec. and almost near to my target for second position. The moment, my profit reaches 200 points, I will exit. Otherwise, when appropriate time i.e. 6-8 Jan comes for 1st position for Jan. I will exit from my present position, even my profit is less than 200 points. By making two positions per month may or may not give 200 points per position, but surely it will give more than 300 points per month. So it is better for two positions per month to get better profits.

I am trading in Nifty Future also and that's my other plan i.e. Nifty Swing Position trading. You can see this on my other topic at this forum. I have both the plans in my portfolio and both are different way of trading. And sometimes it happens to me that I am long in hedging and short in swing, but I never mix up both with each other as both are different strategies.

Instead of depending on time decay, I am concentrating on my target. However, I am testing on your suggestions. And will surely get back to you after few days.

Thanks and keep on posting

Hans Raj
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hansraj456
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Joined: 17 Nov 2009
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Post: #96   PostPosted: Sat Jan 02, 2010 2:22 pm    Post subject: Reply with quote

Hi venkchandra

During the first week we will be selling options for Feb. and on 4th of Jan. it will depend where nifty levels would be and second, liquidity in feb options is available or not. If liquidity is not there, we would have to wait for 3-4 days, only then will sell options. So on 4th Jan you may or may not be able to sell option of feb (150 points above and below of nifty levels)

Let's begin new year with better investment.

Thanks
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hansraj456
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Joined: 17 Nov 2009
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Post: #97   PostPosted: Sat Jan 02, 2010 2:25 pm    Post subject: Reply with quote

Hi Mr. cpsinghvi

Please go through all the posts in this topic. Read them time and again. You can contact me if there's any doubt. If you are totally new to future and options, please let me know, I will surely help you out.

Thanks
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hansraj456
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Post: #98   PostPosted: Sat Jan 02, 2010 2:28 pm    Post subject: Reply with quote

Hi smeetrajesh

You can see my stock calls in stocks section of this forum. these calls are given based on various technical and financial indicators and RSI is also one of them. All these calls are positional i.e. on delivery basis. Please check stocks call there.

Thanks
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hansraj456
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Joined: 17 Nov 2009
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Post: #99   PostPosted: Sat Jan 02, 2010 2:33 pm    Post subject: Reply with quote

Hi Harsh Kapoor

Thanks for your nice comments and trading on my suggestions. For Nifty swing trading, you can see it on my other topic ' Nifty Future Positional Swing Trading Calls'. We have already started trading on that plan. Please go through all the rules and querries raised by various people and their answers before investing in that strategy.

I would like to know some other strategies from your side, you can share these either here

Thanks
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hansraj456
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Post: #100   PostPosted: Sat Jan 02, 2010 3:01 pm    Post subject: Reply with quote

Hi All

I have been contacted by some needy persons (mainly Household women, students, unemployed etc.) who have small capital in their hand and want to earn assured income from this market to make their livelihood through this hedging strategy. I have therefore, tested behaviour of Mini Nifty Options which are generally liquid in the current month only or near to previous month expiry and after expiry market will open on 4th Jan. I will give call on Monday for investment in Mini Nifty under hedging strategy. Capital of around 30000 - 35000 will be required for entire hedging strategy pack. This position will be for almost entire month i.e. one call per month will be given for the time being and target for the same will around 250-300 points in a month and will will be exiting from this call near to the January expiry date. All the small investors who have small capital with them and wish to invest in this strategy to earn good profits on monthly basis, can use my call. I will also give follow-up of this call.

Thanks
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sandew
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Joined: 02 Feb 2009
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Post: #101   PostPosted: Sat Jan 02, 2010 4:28 pm    Post subject: Reply with quote

Hi, to all and to HansRaj who is doing a laborious work. I gone thru first 4 pages of the thread and i find mixing of options and futures. they are two different streams and are combine only as part of a hedging strategy depending on prevalent delta and theta. To begin Jan, i would be selling, writing, OTM 5400/5500 Ce and simulataneouly writing, selling 4700/4800 Pe. - a short straddle. i will hold tight and monitor my position.. how it is to be done.. I leave for HansRaj to describe as this is his thread.

HansRaj please expand on this and do not mix options and futures for profit , use only as fall back in emergency for hedging. Thank You.
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hansraj456
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Post: #102   PostPosted: Sat Jan 02, 2010 4:53 pm    Post subject: Reply with quote

Hi Sandew

What options you are going to sell, have you ever back-tested. How much money for margin you require and how much points you will be earning from that. What will be your strategy policy. Can you please explain with example in case of what happens if nifty goes upward or downward upto which levels. As per your strategy, you will not be even able to get profit of 100 points. Kindly explain in financial terms, i.e. margin, target, nifty movement etc.

Why should I not mix option and future for getting better results, is there any ban on mixing both type of contracts. You said I should use it in case of emergency, and my emergency starts the moment I sell the options as I have to protect the premium I receive by selling the options.

I again request you to please first read the entire topic from start to end very carefully. Our aim is to just get profit, whether it comes from either of options or nifty future. Why we are concerned that this option is giving or that is not giving or we are getting from nifty future only. Our net result should be, what number of points we expect from one position, we should be able to get that. Nothing more and nothing less. Why people do not understand, we are here to just make money, nothing else.

I request all the readers, is there any person who has any strategy which can give 300-400 assured points per month with capital of maximum 75000. If that is possible, I would definitely adopt that strategy without fail. But that strategy must be a proven one and properly back tested.

Thanks
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sandew
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Joined: 02 Feb 2009
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Post: #103   PostPosted: Sat Jan 02, 2010 5:09 pm    Post subject: Reply with quote

I withdraw my comments in case it is offensive. I thought you had a separate thread for NIFTY trading. and this thread was on Options trading. Thank You.
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hansraj456
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Post: #104   PostPosted: Sat Jan 02, 2010 5:16 pm    Post subject: Reply with quote

Hi sandew

I am not offensive on your comments but I am hurt because u placed your comments without going through the entire topic of this forum and yet to understand it completely. I just request you to test this plan and if you have a strategy where we can get better number of points, please share that with us. I will be the first person to congratulate you on that.
I did not mean to hurt you, even if you feel hurt, I am sorry.

Thanks
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psrao
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Joined: 02 Apr 2008
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Post: #105   PostPosted: Sun Jan 03, 2010 10:05 pm    Post subject: Reply with quote

harshkapoor3 wrote:
Hello Hansraj
I will square up both my position till 3rd week, and enter into new strategy at that time, which will be specifically ur two different strike prices strategy with 300 points gap between the two.
I was going through psrao coments for you, to trade only in futures as ur loosing money in options, but i thing urs is a hedgeing stategy and if u play only in nifty, it will become naked, hence i dont think that will work.
Any ways u promised to tell ur swing trading stategy, i am too waithing for the same, since i too have a particular strategy for entering and exiting stocks and nifty, i too would like to discuss with you ragarding the same.\\
As per my work nifty is strong above 5220 and weak below 5130.


Harsh,
Assume u sold 5100PE and 4800 CE as hansraj did and NF at 5000 and ur long.
Tomarrow if NF opens at 4500 , u lost 500 points with NF, 5100 PE will be at no less than 600, where as u collected 510 premium with both PE & CE.

Just wanted to say , this stratergy is still naked, nothing personal,

Regards
psrao
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