What is the best way to hedge futures? if i am long in futures, shall i short OTM call or should I just buy OTM Put option, considering premium decay in call and put options

K Ramesh Kannan
2019-10-17 22:30:32

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    Analyst

    Senior Analyst
    2019-10-18 11:49:28


    Dear Sir, The best way to hedge future with option is to buy future and buy ATM (At the Money) Put Option and Sell Future And Buy ATM Call Option, Considering premium decay if your view does not work then you have to get out of the the position