General Trading Chat
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I would second Subhadip Da.
By buying Future your Delta +1
And your selling a synthetic future, which is nothing but BUY PE, SELL CE.
Now, coming to the real stats, ur PE/CE pair is slight skewed with a +ve Delta of about 0.3.
So if mkt went down from your entry, u'd have a small loss.
But the mkt has to move sufficiently for u to gain IMHO, like 200pts afte which it hits a gain ceiling.
Similarly, u'll have a very small loss if mkt went down, say within 200pts.
Lower than that, u'll have virtually NET delta=0 from the buy PE, hence limit loss.
More technically, since PE is more ATM then CE, u'll have slower loss and faster gain in terms of points, hence a good R:R
but strategy isn't bullet proof
(This line be taken sportingly )
By buying Future your Delta +1
And your selling a synthetic future, which is nothing but BUY PE, SELL CE.
Now, coming to the real stats, ur PE/CE pair is slight skewed with a +ve Delta of about 0.3.
So if mkt went down from your entry, u'd have a small loss.
But the mkt has to move sufficiently for u to gain IMHO, like 200pts afte which it hits a gain ceiling.
Similarly, u'll have a very small loss if mkt went down, say within 200pts.
Lower than that, u'll have virtually NET delta=0 from the buy PE, hence limit loss.
More technically, since PE is more ATM then CE, u'll have slower loss and faster gain in terms of points, hence a good R:R
but strategy isn't bullet proof
(This line be taken sportingly )
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