Can anyone tell me How to hedge an already placed Naked Long call option ?
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Make debit spread with selling otm call
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Thank you.
Create a short position by Buying PUT or Selling OTM Call, Preferably same expiry.
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Thank you
Best and easiest possible way to hedge a long call option, is by building a vertical spread=>
For your Long Call option, build a Bull Call Spread:
- Buy ATM or slightly OTM Call option
- Sell deep OTM Call option
As, you already have done the first step, keep in mind to sell a cheaper or a higher strike price call option.
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Thank you very much for the answer