Hi Linkon/AW10,
I have following position.
2lot of 5000CE sold at 255
2lots of 5400PE sold at 150.
Initially I had taken only first position when market was around 5200 & I was expecting it to go down. But it did not happen. hence added two lots of 5400PE to hedge it.
This is just keeping me in no loss no profit zone in the range of 5000 to 5400.
If market moves to 5500 then I will be shorting one more lot of 5000CE @520. This will make me profitable below 5500 till 4800
OR if I short four more lot of 5400PE @130 then I will be profitable above 5260 to 5600.
But I am not sure which way to select. Pls advice based on technicals.
Also do let me know if I can do something else with this positions to cover myself from 4900 to 5600
I have following position.
2lot of 5000CE sold at 255
2lots of 5400PE sold at 150.
Initially I had taken only first position when market was around 5200 & I was expecting it to go down. But it did not happen. hence added two lots of 5400PE to hedge it.
This is just keeping me in no loss no profit zone in the range of 5000 to 5400.
If market moves to 5500 then I will be shorting one more lot of 5000CE @520. This will make me profitable below 5500 till 4800
OR if I short four more lot of 5400PE @130 then I will be profitable above 5260 to 5600.
But I am not sure which way to select. Pls advice based on technicals.
Also do let me know if I can do something else with this positions to cover myself from 4900 to 5600
As per my tracking, it gives decent return. Write on the day of expiry or the day before, you would get real value + 80-100. One needs to be clever to choose the range, so that position can be held for next 15 days.
Normally premium comes down to intrinsic value + 20-30 odd easily.
Hope this helps!