General Trading Chat

[arsh22g]

How and when to hedge swing position using options.How to choose option strike rate.Does for 1 NF 1 option contract sufficient.
ST sir you explained earlier somewhere.Could you exlain more about that.

That depends on the delta, ATM will have 0.5 delta, so you will need 2 options for 1 NF, OTM will have lower delta and ITM higher. But if you want to be more risk averse, you can hedge using gamma, esp if the market momentum in a particular direction is picking up.

I have personally tried delta hedging on ATM straddle shorts using 0.5 NF (reverse to what you asked), but manually tracking is difficult, works well if you know coding.

 

[Somatung]

How and when to hedge swing position using options.How to choose option strike rate.Does for 1 NF 1 option contract sufficient.
ST sir you explained earlier somewhere.Could you exlain more about that.

There are many ways, or let's say strategies, how to do it. If you want to get into this topic, here a link you can start with: http://www.optiontradingpedia.com/options_strategy_library.htm In here you go to "Synthetic Options Strategies". There you will find seven ways of how to do it. Click on each and one of those links to the synthetic option strategies and you will get some basic information about what you are asking for. There is much more behind this topic as there are more sophisticated ways to do it compare to what you will find there. But no need to know every thing. Just use the information you will find there the right way and that's it.

In case you really think you really want to go deeper into the topic, the next step would be to read Options Trading: The Hidden Reality by Charles M. Cottle If you understand this book, then you are on a good level for the final step to become a professional hedge master on highest level. But no need to be there, as with simple ideas we also make more then enough money if we understand those simple concept and ideas and use those concept and strategies the right way. No need of one houndert rules and ideas.

Have a nice day / Dan​

 

[Singhraja]

St sir or anyone can you please post any PDF or file of your important posts please share the link thanks

 

[candle]

St sir or anyone can you please post any PDF or file of your important posts please share the link thanks

You may refer to below thread for some of ST's posts. Also you are requested to contribute there if u like to.

http://www.traderji.com/technical-analysis/100286-excellent-collection-sts-posts.html

 

[Singhraja]

Thanks bro but I had seen a link of PDF in thread don't remember can any member put up the link once again thank

 

[vikas2131]

The Middle East markets is plunging with Saudi down over 5% and Qatar over 7%

 

[iwillwin]

Kitne market track karte ho bhai

 

[arsh22g]

Good Morning fellas :clap:

SGX Nifty has recovered all of its 100 odd points loss of Friday, now at par with NSE Nifty close on Friday. Does this indicate something or just a random event? Would like to hear from senior members who might have seen it earlier too.

 

[iwillwin]

7600 and 7700 calls are sold....so pull back could be limited to 7550 to max....

 

[candle]

A warm good morning friends.