Nifty And Bank Nifty
Options Hedging Strategy
Low Risk Nifty And Bank Nifty Options Hedging Strategy (Intraday Only)
1.Stress free position.
Stop loss not the only option you have. if it's hedging ,then you are safer than the STOP LOSS. either way of the market movement, you gain money.
2. You decide your trade.
Book your profit in one segment. use another strategy in the other segment. both ways you can trade more and extend your gains, if done very well.
3. Take a break.
Eventually when trading is done, you always need some time to take a break and do your other works and things. while you hedge you have a low stress, but in the STOP LOSS entry you can many times see the SL triggered when you were not around. hedging gives you a chance to come back and decide about your trading position.
5. Cannot avoid the STOP LOSS.
While you can trade in excitement and make money, but if the SL is triggered, then nothing you can do about it. Craving,begging,requesting cannot change it even if you converse with the NSE. while in case of hedging one you can wait and continue to hedge and exit in profit.
6. Sleep easy with having one side in a safer position.
In a gap opening against your position ,then a considerable huge amount would be under toss. whereas hedging will have you safe and breathe easy. so hedge and trade safe STOP LOSS is not executed if the stock/nifty jumps.
Note- nifty rarely moves around 300 points only due to special events. this may give losses
strategy provides up to 10% of profit per week (depends upon margin used)