## Sunday, March 14, 2010

### Nifty Future & Option Hedging Strategy Update

From now onwards all the updates and calls for Nifty Future & Option Hedging Strategy are being given at www.kamnit.com

## Thursday, March 11, 2010

### Profit Calculation of 1st Hedging Position of March 2010

Profit calculation of 1st hedging position of Mar.2010 :

Position taken on 04 March 2010

Sold Options of April 2010 Series and Hedging to be done by Nifty Future of March 2010 Series.

Current Premium of 4900 Call = 305

Current Premium of 5200 Put = 171

Total Current Premium = 476

Nifty Future Points gained by Hedging = 5146 - 5121 = 25

Points gained at the time of selling both options = 488

Net gain in points 488 - 476 + 25 = 37 Points

We have target of about 200 points by 19-24 March 2010

Note : We are giving Positional Stock Calls at www.kamnit.com only.

Position taken on 04 March 2010

Sold Options of April 2010 Series and Hedging to be done by Nifty Future of March 2010 Series.

Current Premium of 4900 Call = 305

Current Premium of 5200 Put = 171

Total Current Premium = 476

Nifty Future Points gained by Hedging = 5146 - 5121 = 25

Points gained at the time of selling both options = 488

Net gain in points 488 - 476 + 25 = 37 Points

We have target of about 200 points by 19-24 March 2010

Note : We are giving Positional Stock Calls at www.kamnit.com only.

## Thursday, March 4, 2010

### 1st Hedging Position of March 2010

Sell Nifty 4900 Call (Apr) at 255-260 and hold. Go Long if Nifty Fut trades above 5090 and hold till Nifty Future comes back below 5090

Sell Nifty 5200 Put (Apr) at 225-230 & hold. Go Short if Nifty Future trades below 5040 and hold till Nifty Fut comes back above 5040

We have sold 4900 Call at 258 and 5200 Put at 230. So we got total premium of 488 points.

Sell Nifty 5200 Put (Apr) at 225-230 & hold. Go Short if Nifty Future trades below 5040 and hold till Nifty Fut comes back above 5040

We have sold 4900 Call at 258 and 5200 Put at 230. So we got total premium of 488 points.

## Wednesday, March 3, 2010

### Final Profit Calculation of 2nd Hedging Position of Feb. 2010

Final Profit calculation of 2nd hedging position of Feb.2010 :

Position taken on 26 February 2010

Sold Options of March.2010 Series and Hedging to be done by Nifty Future of March 2010 Series.

Current Premium of 4800 Call = 276

Current Premium of 5000 Put = 74

Total Current Premium = 350

Nifty Future Points gained by Hedging 5052 - 4890 = 162

Points gain at the time of selling both options = 407

Net gain in points : 407 - 350 + 162 = 219 Points

We have changed our strategy on timing the call. So next call will be given at appropriate time so that for hedging less trades are generated and similar profits is gained in less time frame.

Position taken on 26 February 2010

Sold Options of March.2010 Series and Hedging to be done by Nifty Future of March 2010 Series.

Current Premium of 4800 Call = 276

Current Premium of 5000 Put = 74

Total Current Premium = 350

Nifty Future Points gained by Hedging 5052 - 4890 = 162

Points gain at the time of selling both options = 407

Net gain in points : 407 - 350 + 162 = 219 Points

We have changed our strategy on timing the call. So next call will be given at appropriate time so that for hedging less trades are generated and similar profits is gained in less time frame.

## Tuesday, March 2, 2010

### Profit Calculation of 2nd Hedging Position of February 2010

Profit calculation of 2nd hedging position of Feb.2010 :

Position taken on 26 February 2010

Sold Options of March.2010 Series and Hedging to be done by Nifty Future of March 2010 Series.

Current Premium of 4800 Call = 253

Current Premium of 5000 Put = 94

Total Current Premium = 347

Nifty Future Points gained by Hedging 4890 - 5022 = 132

Points gained at the time of selling both options = 407

Net gain in points 407 - 347 + 132 = 192 Points

Please hold this position for few more points.

Position taken on 26 February 2010

Sold Options of March.2010 Series and Hedging to be done by Nifty Future of March 2010 Series.

Current Premium of 4800 Call = 253

Current Premium of 5000 Put = 94

Total Current Premium = 347

Nifty Future Points gained by Hedging 4890 - 5022 = 132

Points gained at the time of selling both options = 407

Net gain in points 407 - 347 + 132 = 192 Points

Please hold this position for few more points.

## Friday, February 26, 2010

### 2nd Hedging Position of February 2010

Sell Nifty 4800 Call (Mar) at 205-215 and hold. Go Long if Nifty Fut trades above 4890 and hold till Nifty Fut comes back below 4890

Sell Nifty 5000 Put (Mar) at 190-200 & hold. Go Short if Nifty Fut trades below 4840 and hold till Nifty Fut comes back above 4840

We have sold 4800 Call at 212 and 5000 Put at 195. So we got total premium of 407 points.

Sell Nifty 5000 Put (Mar) at 190-200 & hold. Go Short if Nifty Fut trades below 4840 and hold till Nifty Fut comes back above 4840

We have sold 4800 Call at 212 and 5000 Put at 195. So we got total premium of 407 points.

## Thursday, February 25, 2010

### Final Profit Calculation of 1st Hedging Position of Feb. 2010

Final Profit calculation of 1st hedging position of Feb.2010 :

Position taken on 05 February 2010

Sold Options of March.2010 Series and Hedging to be done by Nifty Future of February 2010 Series.

Current Premium of 4600 Call = 327

Current Premium of 4900 Put = 175

Total Current Premium = 502

Nifty Future Points gained by Hedging 4864 - 4810 = 54

(We could go long in Nifty Future at 4810 as per rules.)

Points gain at the time of selling both options = 555

Net gain in points 555 - 502 + 54 = 107 Points

We exited from this position due to major event of Budget. In stead of making any hedging position we have bought 4900 CE and 4800 PE of March contract.

Position taken on 05 February 2010

Sold Options of March.2010 Series and Hedging to be done by Nifty Future of February 2010 Series.

Current Premium of 4600 Call = 327

Current Premium of 4900 Put = 175

Total Current Premium = 502

Nifty Future Points gained by Hedging 4864 - 4810 = 54

(We could go long in Nifty Future at 4810 as per rules.)

Points gain at the time of selling both options = 555

Net gain in points 555 - 502 + 54 = 107 Points

We exited from this position due to major event of Budget. In stead of making any hedging position we have bought 4900 CE and 4800 PE of March contract.

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