short strangle hedged with futures

Discussion in 'Options' started by Carl J, Dec 13, 2008.

  1. The hedge has to be pro-active, not re-active as in this case. In other words the position is hedged at time of open, not after you have sustained a loss. You have unlimited loss on the short strangle and the futures, THAT'S INSANE.





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    #11     Dec 14, 2008