Gurmy,
Now, having shorted, we have two choices...
1) Either take profit (if and when it comes). It will be around 10%;
2) Plan such that we get to keep most of the Cost (atleast 50%);
For (2) market could give us several choices like:
1) buy a 100 OTM pair at same cost of 120, such that we make 50 points (Rs.2500 per lot) at expiry.
2) Buy Out the one leg which becomes ATM; And cover the cost by selling more options. This to be done with SL;
If above two are options under consideration, then it seems 200 OTMs are a better choice.
Now, having shorted, we have two choices...
1) Either take profit (if and when it comes). It will be around 10%;
2) Plan such that we get to keep most of the Cost (atleast 50%);
For (2) market could give us several choices like:
1) buy a 100 OTM pair at same cost of 120, such that we make 50 points (Rs.2500 per lot) at expiry.
2) Buy Out the one leg which becomes ATM; And cover the cost by selling more options. This to be done with SL;
If above two are options under consideration, then it seems 200 OTMs are a better choice.