My condolences Luckily I haven't lost any money, but lost about 2 weeks valuable time with this hedging stuff. From now on: no more experiments... (I was interested to learn also some other markets like futures etc --> but have no interest anymore in anything but standard stock and index long options; I'll specialize myself on these only).
I have designed and traded good some of day trading and long term Commodity systems in my time, have given away a good amount as well. I have toiled over past last 3.5 years dealing with options, and I have developed I think a good options system, it losses under 3% and that leaves over 97% profitable trades from a buck to $12.00. I don't anything breakeven if you have to pay the fees, let others pay for that. Being that I have spent at least 60 hours a week in back testing 3.25 years, spending much to get option data, spent to get system automated, no way will I share this as I see I can do so much better eventually then day trading and long term combined. Those who don't know how to make systems most likely will join your post and those who already knows what works in the markets will not, it is simple, if you knew how, you not put up another post begging others to do work you should be doing. You stop this nonsense and start reading and back testing.
Maybe I was too quick abandoning my research into options selling and hedging... (...to be continued after verifying my latest ideas on this...)
Feel free to visit my open source approach to options: http://www.elitetrader.com/et/index...day-strategy-for-index-futures-options.298637
Also visit this page for correction in the strategy: http://www.elitetrader.com/et/index...ategy-for-index-futures-options.298637/page-5