Delta Neutral Strategy (Long Nifty & Long Puts)
As per my earlier commitment I am starting a trade on the Nifty future and going long with its puts.
Action: Buy 1000 Nifty Futures (29th September, 2005) @ 2347.00 (Closing Price) = 23,47,000.00
Buy 2000 Nifty SP2340 Puts (29th September, 2005) @ 46.00 (Closing Price) = 92,000.00
Total: 24,39,000.00
Margin requirement is only 10% or 5% (Please let me know which one is correct) In case it is 10% the investment is going to be 2,43,900.00 and if it is 5% then the requirement is going to be only 1,21,950.00.
For those this trade is too large, they can reduce the numbers to 400 futures of Nifty and 800 Puts. Keep in mind that the numbers are even.
I will keep posting development on this trade for the rest of the period till expiry of the future date i.e.,
29th September 2005. I will post only on days when the action will be required, for no action days nothing will be posted.
So keep coming back and see how the adjustments are made to the delta neutral trade.
Regards to you all the TRADERS.
wastej
As per my earlier commitment I am starting a trade on the Nifty future and going long with its puts.
Action: Buy 1000 Nifty Futures (29th September, 2005) @ 2347.00 (Closing Price) = 23,47,000.00
Buy 2000 Nifty SP2340 Puts (29th September, 2005) @ 46.00 (Closing Price) = 92,000.00
Total: 24,39,000.00
Margin requirement is only 10% or 5% (Please let me know which one is correct) In case it is 10% the investment is going to be 2,43,900.00 and if it is 5% then the requirement is going to be only 1,21,950.00.
For those this trade is too large, they can reduce the numbers to 400 futures of Nifty and 800 Puts. Keep in mind that the numbers are even.
I will keep posting development on this trade for the rest of the period till expiry of the future date i.e.,
29th September 2005. I will post only on days when the action will be required, for no action days nothing will be posted.
So keep coming back and see how the adjustments are made to the delta neutral trade.
Regards to you all the TRADERS.
wastej