Hi Dhamodaran,
The strategy is good and has been discussed before ... Its hedge strategy ... But, remember, nothing is assured in markets ... These are relatively better strategies ...
During high VIX, if there is not much movement, premiums will dip heavily ... Some months will be challenging in hedge ....
Thanks for your valuable comments.If possible can you share the better strategies which involves very very low risk and guaranteed 10% return a month.
Regards,
Dhamodaran.G
There is no 100% assured 10% returns a month strategy ... If there was one, banks would give up FD and move on to that
The hedge strategy that you said itself is a good strategy ... work on it ... Just be a little cautious during months when VIX is high ...
Hi Mani,
I have question. Here premium has to the same. Is it important that the same strike price different should be the same with current price. e.g. Nifty Spot (6100). Buy Nifty Call 6300 & Nifty Put 5900. The difference between call strike price and current spot price is 6300 - 6100 = 200 and also the difference between current spot price and put strike price is 6100 - 5900 =200. Is these two differences should be the same?
The idea is to have bet equally both sides ... For that picking same premium is easier way of doing it ... Go for the nearest out-of-the-money contract ...
Sir,
How can we get the same premium for both Call and put options for nearest out of the money contract between 11-12? I am new to options so asking for little bit clarification..
One more query sir..I have read your Positional bank nifty hedge strategy as well which i found good..Like the above mentioned intraday options strategy do we have to focus on buying the call and put at same premium for bank nifty..i feel it is difficult to acheive that in bank nifty though..
What is difference between the Hedging strategy and straddle strategy?
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