Archive for June, 2010

How to hedge Short Futures Position using options ?

This item was filled under [ How-To, Option Strategies ]

In this post I am trying to answer a question asked by my trader friend who wants to capitalise of long term bearish view with Short Futures position, but want to explore how it can be hedged using options to safegaurd against and dead-cat bounce from the fall. Scenario: Let’s say I expect the markets […]

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How to trade bearish view with options ?

This item was filled under [ FAQ, Option Strategies ]

One of my trader friend asked me following question – Lets say I am bearish for the next 2-3 months. What strategy can I use? The Nifty PE of July 2010 are trading at, 5000PE @156.8 4900PE @124 4800PE@101 Now, If I am expecting levels of 4800 minimum in July, how do I use this […]

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