HOW

TO HEDGE NIFTY FUTURE WITH NIFTY

OPTIONS(INDIAN STOCK MARKET)
·

NO NEED TECHNICAL ANALYSIS

NO NEED FUNDAMENTAL
NO NEED ANY BODIES ADVISE
NO NEED ANY TIPS
NO NEED WATCH MARKET EVERY TIME
NO NEED EVERY DAY TRADING
NO WORRY ABOUT STOP LOSS
NO WORRY ABOUT MARKET CRASH
LOSS IS VERY LESS
PROFIT IS UNLIMITED
ONLY 3 TO 6 TRADING IN A MONTH
DO AND SLEEP AND ENJOY

LONG STRATEGY
01.BUY NIFTY FUTURE+BUY PUT OPTION
02.BUY NIFTY FUTURE+SHORT CALL OPTION

SHORT STRATEGY
01.SHORT NIFTY FUTURE+BUY CALL OPTION
02.SHORT NIFTY FUTURE+SHORT PUT OPTION

MOST OF TIME I WILL HEDGE SAME MONTH NIFTY FUTURE AND NEXT MONTH
NIFTY OPTIONS(EXAMPLE OPTION PRICE IS AT 200, ONCE NIFTY MOVE 200
POINTS AND ABOVE I WILL ONLY EXIT NIFTY FUTURE, AND NIFTY OPTION I
WILL KEEP PENDING BECAUSE THAT IS MY PROFIT. THERE IS MANY CHANCES
MARKET TO GO REVERSE THEN I BOOK GOOD PROFIT)

IT IS AN EXAMPLE MY CALL GIVEN IN A FORUM

ENTRY ON Oct 12, 2010 - 01:02 PM
BUY NIFTY FUTURE AT 6100(OCTOBER)+BUY 6200 PUT AT 205(NOVEMBER)
LOSS BELOW 40 POINTS PROFIT 200+ POINTS TIME FRAME OCTOBER EXPIRY
EXIT (01) ON Oct 14, 2010 - 09:22 AM
BOOKED NIFTY FUTURE AT 6310

EXIT (02) ON Oct 14, 2010 - 02:37 PM

BOOKED 6200 PUT AT 155

PROFIT AND LOSS

NIFTY FUTURE GAIN 6310-6100=210 POINTS
PUT LOSS 205 -155 = -50 POINTS

TOTAL GAIN 210-50 = 160 POINTS

INVESTMENT RS.40,000/= MAXIMUM

2 DAYS RETURN 160 POINTS X 50 = RS.8000/=
BROKERAGE RS.300 MAXIMUM
NET GAIN RS 7700/= WITHIN 2 DAYS