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A thread on SwingTrading after event: its high risk and reward when there is an event like result day. So I thought of writing a thread about it using options to hedge and how to protect risk for limited time.
2/n Let's take tomorrow's trade plan, After results on #infy or #tcs there might be gap opening. If TCS opens gap down and ur TA system gives reversal BUY on 5min chart after 9.45am, it's too risky to buy as higher time frame must be still bearish, lot is noise on TV and on chart
3/n Only experienced veteran can buy Future here in gap down opening. We can use #options2hedge & hedge has cost which we will minimize.

As explained earlier, IV plays big role on premium, so IV must be cool down if we will be buying options, TCS IV was 33 on event day
4/n and 30D avg IV is 22, let it be below26 to enter the trade. Assuming M5 chart confirmed reversal buy. (#NimblrTA gives us alert, Yours can be any system) Buy 2PE ATM and then Buy 1lot Future, your delta will be close to zero sum. Your payoff chart will be sharp cornered V
5/n sharp cornered V and you don't have much to lose on Vega. As soon as stock moves up ur delta sum will increase from +/-10 towards +/-50 as Gamma is on ur side.

Only Greek against you is Theta, time value. But in swing trade to hold till same day 3pm or next day morning,
6/6 u don't need much TIME. U can afford to lose small time value against unlimited profit either side, keeping ur view bullish, risk limited to virtuality zero. Delta should be +10 to +30 depending How bullish your view is. Returns against capital is low since risk is low.
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