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

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.

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.

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.

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.

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.

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.

Exit call from Hedging

Exit from Hedging Position. Exit call has been given at Messenger as also through SMS.

Profit Calculation of 1st Hedging Position of February 2010

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 = 332
Current Premium of 4900 Put = 176
Total Current Premium = 508
Nifty Future Points gained by Hedging 4870 - 4810 = 60
(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 - 508 + 60 = 107 Points

Target : 200 Points by 19-23 February 2010. But we have not yet been able to target. As I have already mentioned in my previous post that we will hold this position till budget and exit at an appropriate time because we may not make fresh position for hedging before budget presentation. So hold for the time being.

Clarification for Nifty Future & Option Hedging Strategy

We are near to our target even taking late entry into Nifty Future due to gap-ups. We will continue to hold this position and will exit after getting around 50-100 points more than our target. We are changing our plan for few days due to Union Budget session next week. As per our strategy, before any known big event, we don't take hedging position and instead of this, a special call may be given at appropriate time for buying OTM Options after exiting from present position. Thanks.

1st Hedging Position of February 2010

Sell Nifty 4600 Call (Mar) at 260-270 and hold. Go Long if Nifty Fut trades above 4760 and hold till Nifty Fut comes back below 4760

Sell Nifty 4900 Put (Mar) at 285-295 & hold. Go Short if Nifty Fut trades below 4710 and hold till Nifty Fut comes back above 4710

Premium levels may vary at the time of taking position. Try to get around 540-550 points.

EXIT from 4800CE & 5100 PE Hedging Position

Hi - People holding position of selling of 4800CE & 5100PE and Nifty short at 4950 may EXIT now (9.35 AM), Fresh call is coming soon.

Exit from previous Hedging position

People who had taken Nifty future & Option Hedging position by selling 4800 Call and 5100 Put may exit today as profit of 200 points is likely to be achieved. Call for first position of February 2010 will be given at appropriate time.

Previous Holding for Hedging

Few people have taken hedging position by selling 4800 CE and 5100 PE (Feb.) few days back. We will give a call for exit and making fresh position. - Thanks

I will be giving here Nifty Option sell call for far month and hedge with Nifty Future. The next call will be given around first week of February, 2010. This will be a least risky call and expected profit will be around 10 - 30% on the invested capital. For 1 lot position for two weeks you need approx. Rs.75000/-