Guys
I have a good trading idea, does anyone is using options to hedge current G/J positions?
I am planing to go long at 180 big time, but to hedge the short side using options at 174 or more with the same ammount of lots traded, this over a monthly period. My idea is basically, if the price reverses and continues up to lets say 200, then I will get huge earnings from rolls + pips over the longs losing only the premium of the hedge. Worst case scenario will be it continues from 180 to 174 or lower, and my longs are protected + I am making money over the rolls.
I need comments regarding this issue.
Thanks
I have a good trading idea, does anyone is using options to hedge current G/J positions?
I am planing to go long at 180 big time, but to hedge the short side using options at 174 or more with the same ammount of lots traded, this over a monthly period. My idea is basically, if the price reverses and continues up to lets say 200, then I will get huge earnings from rolls + pips over the longs losing only the premium of the hedge. Worst case scenario will be it continues from 180 to 174 or lower, and my longs are protected + I am making money over the rolls.
I need comments regarding this issue.
Thanks
The market can stay irrational, longer than you can stay solvent.