How to Hedge Futures with Options

Hai friends,

I have Query About How to Hedge Futures With Options Please Guide me With your Valuble Information & Ideas .........

Last month I Attend a seminar in Chennai **** financials. he said he is an hedge fund manager he have a track record of 90% above each year constantly
& They said the most traders cannot see risk & money mgt the most important element in financial industry

1.) The FUTURES risk can be managed by OPTIONS
2.) The purpose of Options markets is to reduce FUTURES positions risk
3.) & Finally in this Method the Maximum Draw down is not more than 5%
(based on your account size) WHATEVER THE MARKET CONDITION IS (RISK FREE GET RICH) THE ONLY RISK IS YOUR PREMIUM

& Finally My Question is

Suppose mcx Allowed Options (i never tried nse )

(E.G)

I Take Position On Gold

Buy =29,200
Stop loss =29,000
Tick value = 100 rs

My TOTAL RISK AMOUNT IS (200*100) = 20,000

in this above how i hedge options gold ............ for premium risk only

Thankyou:thumb::thumb::thumb:

How to Hedge Futures with Options