[Hedge Design simple Spread ‘Simply Buy and Sell‘| Lot each in the same side ie. in CE oF PE. Risk is Buying less Selling. More the distance in Stike Price of Buying and Selling, more willbe loss chances. Here risk Is only (640-492) = 148, The risk wil be adjusted by selling one more lot off above Strike CE of 38000. The Highest Profit will be| only at 37000 ie. the Selling Stike price. If expired at 37000 then Buying wil be 500 and Selling will be 0. In case profi In Buying Is (300- 840) = -340 and in selling (492-0)= +492. Overall Profit = (+492-340) +152 Points. Above 37000, at any strike price profit Is identical BANKNIFTY SED FUT LBANKNIFTY SEP 36700 CE LBANKNIFTY SEP 37000 CE [BANKNIFTY SEP 38000 CE 0.00» 2677258 629.60 1.90 188.65Ratio Tn Ratio We wll buy One Lat and Sall Twa Lot above Strike Price in a simple mathematical calculation that the Buying less seling wil be equal. In this case. Euying Premium in Risk is 23.45 and eoling promium is (11.82) = 28.6. Horo risk is only +0.15. This should be made in far OTM or at ATM. If Nifty expired anywhere below 18000 we will be inno loss. Highest profit wil be at Selling Strke Price ie. at 18200 (In Buying #176.55 & In S Jing #29.6) and on above side loss willbe started after sinke price 18400, which wil beadjusted further INDIA Wx NIFTY se® FUT NIFTY SEP 19000 cE 000 1398 1736430 nas cover Call (Future) ‘We will buy Future One Lot and Sell above siike CE One lot having pr lum equal to the distance of| ‘Support area from Future. Risk i secured up to Future price less Selling premium area. Below that Loss wil be undefined. On the upper side profit wil be locked equal to seling premium. Here, Loss is secured up to (7381 14) = T7178 strike. After that loss wil be increased in lower side. On the upper side wherever OctEut expired Profi wil be 214 point only. NiFTYOCr FUT TY ocr 17600 ce ‘7391.90 212.90Tris best than Future. We have to buy one Lot ITM having chips only and will sell One Lot ATM strike or convert i ito Ratio for beter protecion, Here] NFIYSEPFUT coos 0 s7830 Same” | tes00ce have 464 pot dns ané 8 som Haya. ee (Option) | we sell 17400CE Monthly then up to 170 point in lower vn see - “ Side io, 17200 we are safe but botow that we wil not | ypry ser aio ce con amas ve i Uiied bss ike Future. Our risk s maximum 200 point in this case which we wil agus further, On the upperside profs constant Tn this case, We wl bay One bt Future and wil boy] unnae cues ne lot PE having 70% chips on it On the upside: “ ° Unlimited proft On the dowm side risks defined fhe | rnvsee sur 0s © r7a8a0 FwtUre | ade gone wrong we vl adjust by seling above (F2F)_ | strike CE. Here, Eut is 17364 and 17600PE has 236 | NIFTY SEP 17600 Pe omen Oars hips and 31 Hague i this case 1) mart expites at 18500 then Fut wl ge los of premium 668 point an 175007 ave 773 pant We ven 9% poten | cee mw wos Hawe and it will be constant # Nity crashes wherever it will We will futher adjust this 91 Point buy selling 17600CE having premium 95 point.i) range bound and expire at 17884, then Eu have no loss, PE loss will be (327-296) = St point ii) if market gone to 18000 then 17800PE wit be 0 and we have loss of 327 point but Fut vl give #636 point then we wall be in overall +809 profi. Investme nt Hedging If we Rave any stock (having F&O) the same quanti as LOT size, then we will soll One Lot strike price having resistance area next month expiry at the! starting of the current month. By this if SBIN aot reaches at 460 ypio Qe then we will gat 1500x3= 19500 easily san sain ocr 460. an» 928 Expiry Day Solling 7A the opening of Market sell 50 point up CE and 50] point down PE on expiry day and book after geting 10 point. By taking 10 Lots wil be around Sk Selling 7 or afler 14.25, Soll Stradale of Nifty or ENF. Keop| SL 10 points only, Til 15.00 Hrs, it will show 15-20 points profit as Vig remains in downtrend at this ting everyday in general