Authors Nitish Narang

7 days 30 days All time Recent Popular
Have you tried using Hedges for Margin Benefits?

Let's see how margin behaves with Hedges 🧵

RT if it helps.

Simple Short Straddle Without Hedge:

Strategy: Short ATM CE, Short ATM PE

Margin: 1.71L

POP: 57%

Backtest this strategy:
https://t.co/kC0hucRQEv


Let's start with Tight Hedge 200 points away

Strategy: Short ATM CE, Short ATM PE and Long ATM + 200 CE, Long ATM - 200 PE

Margin: 65K

Backtest this strategy: https://t.co/mbs0hivyI8


Let's go little far away 500 points away

Strategy: Short ATM CE, Short ATM PE and Long ATM + 500 CE, Long ATM - 500 PE

Margin: 66K

Backtest this strategy: https://t.co/HwqYLMI6wN


Margins at 1000 points away Hedge

Strategy: Short ATM CE, Short ATM PE and Long ATM + 1000 CE, Long ATM - 1000 PE

Margin: 72K

Backtest this strategy:
https://t.co/ItDAeNgj2i