Hi,
I have short strangle positions in WIG20 index options. Thinking of a back-up plan in the case of the index breaking either of the strangle strikes, I was considering buying futures with the same expiration date as options.
Normally, with share options, taking long/short position in the underlying is a very straightforward way of hedging sold strangles. However, I am not sure if that can be used with index options and futures like I described above..
Also, is there any difference between index options and index futures options???
Thanks,
Pawel
I have short strangle positions in WIG20 index options. Thinking of a back-up plan in the case of the index breaking either of the strangle strikes, I was considering buying futures with the same expiration date as options.
Normally, with share options, taking long/short position in the underlying is a very straightforward way of hedging sold strangles. However, I am not sure if that can be used with index options and futures like I described above..
Also, is there any difference between index options and index futures options???
Thanks,
Pawel