How can a Future be hedged with Options?

Going long on futures while buying puts would be a good example

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1.buy future sell call

2.buy future buy put

3.sell future sell put

4.sell future buy call

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Hedging is aimed at limiting the losses in case one were wrong.

  1. Suppose one buys Nifty Futures at 7550, then simultaneously one can buy 7500 put option. This would limit losses to 50 points plus premium paid for purchase of put option in case nifty were to fall drastically.

  2. Similarly if one shorts Nifty Futures at 7550, then one can buy 7600 call option simultaneously. This would again limit losses to 50 points plus premium paid to buy call option in case nifty were to rally.

Option strike prices are for example only, one can buy any strike price option which will serve the purpose except for losses will be adjusted accordingly.

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Pls help me with more example with current nifty price and posiblities