Hedge 17 Updated post yesterday Session on corrections

◆ Market is in uptrend we are nifty buyer , we are going with the trend

◆ When you take a position we always keep in mind we are Nifty buyer, Our focus is to Protect Nifty
Premium

◆ Market is dynamic, So we also need to be Dynamic in Adjustments

◆ Now BNF is trending up, However Nifty also trends after 3-4 days of BNF Trend. As BNF stocks
are also part of Nifty
◆ We have added an additional Banknifty buy to reduce he Margin and also if the Banknifty runs up
we can close one BNF sell lot and keep the Buy BNF as is
Example Shown in session

◆ We carry that Nifty from 15 to 15 around one month around price 150-200

◆ Our investment in nifty is around 150×75=11250 to 200* 75= 15000 ok clear

Then we have to protect this investment through selling of Bank Nifty

◆ There are 3 or4 weekly expiry to protect Nifty investment through Bank Nifty selling

Assume that

We sell Bank Nifty of rupees 60 to 100 or some time less depends on BNF attend ( current trend is strong
so we can go with higher range with small premium around 50,60 etc)

4 week so calulation is

= 4×50×60= 12000 &

= 4×50×70= 14000

◆ our net profit at month

3000 to 5000 & it is around 3%-5% montly on our capital

◆ Then why we are selling higher Bank Nifty we have to cover Nifty slowly till month end don't get hurry
or don't become a Bank Nifty seller.

Adjustments

◆ IF in intraday we see the Nifty Fut is below VWAP and Market is downtrend we can sell Intraday
50 – 100 Points away OTM CE as a hedge and also gain the little premium
For Ex: Nifty is at 11450 than we can sell current week expiry 11500 CE or 11550 CE to cover the
loss
◆ Also In Case BNF is trending up than one can also Sell Intraday PE to reduce the loss in Sell
For Ex: BNF is 23000 Than we can sell 22700 or lower PE to gain Premium