Saturday, July 27, 2024

Adjustment Strategy (MONTHLY PEFERRED)

SELL ATM PUT 

SELL OTM CALL

BUY OTM CALL AND PUT FOR HEDGING 




IF MARKET REVERSED ON THE DOWNSIDE WE ARE GOING TO CLOSE THE SOLD TO PUT AND BOUGHT CALL EXAMPLE: 25000 PE AND 26200 CE AND THEN BUY 100 POINTS BELOW IMMEDIATE STRIKE ON THE CALL SIDE EXAMPLE: 25300 CE


THEN YOUR ROI WILL BE SOMETHING LIKE THIS IF YOU ARE ALREADY IN PROFIT YOU DON'T SEE THE LOSS IT WILL BRING DOWN THE MARGIN REQUIREMENT ALSO COMES DOWN

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NOTE: 

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