Options से Long-Term Wealth कैसे बनाएं ? Profitable Trading Strategy !

[@Elearnmarkets]

Eager to kick-start your Trading Career? Be a part of India's First Multi-Asset Trading Mentorship Program by Elearnmarkets with Vivek Bajaj & four other mentors. To know more, fill the form at - elearnmarkets.viewpage.co/KZbin-TMP or call our team at [phone]

[@ibnqasimahmadi5957]

Tnx sir

[@ibnqasimahmadi5957]

Long term option men kaise paise banayen jaldi se banaye video sir...kuch Sikh paun mai....aur fouj k noukri hoti nhi mujhse

[@finideas]

Thank you, @Elearnmarkets, for giving Finideas the opportunity to share our vision on long-term wealth creation.

[@artoflearningtechnicalanalysis]

Thank you sir what about income tax on profit made by put So slab will require changes After income tax only final amount of nifty bees add hongi

[@vivekmudgalglobalcitizen.1279]

👏👏👏👏 Congratulations 👏👏👏

[@Vijay48879]

Mere hisab se vivek sir ne hi sabse pehle you tube par REAL Trader introvise kiya hum aam admi ke liye iske pehle hum kisi trader ko jante hi nahi the so THANK YOU VIVEK SIR keep it up

[@Elearnmarkets]

Thank you for the kind words!

[@finansostudy237]

Wow, Opened a new Dimension within inside me. & After listening that he's been doing it since 2014...makes me feel how less ik about the market. 🙏🇮🇳🙏

[@mjr1702]

I am a learner and yet to get the experience in implementation and other finer details. But i want to say a big thank you to Vivek ji and Govind ji for taking the time to educate and providing such wonderful strategies... that too mind you is free of cost.. these strategies give so much hope .. thank you again..both are such gentlemen

[@Elearnmarkets]

Thank you for the kind words! Do Like, Share & Subscribe for more such content.

[@Munish2589]

Sir apke podcast bahut helpfull hote hai . Aap market ke champions ko hamare samane le kar aate hai jisse hum jese chhote traders ka bahut fayda hota hai. Sir i request ki aap shri Ravi r kumar sir ka interview karein. unka style of trading bilkul unique , simple and accurate hai. Hum to unka ek youtube session le kar he fan ho gye and unke session sikh kar trade liya or successful raha. Please unko invite karein. Yaha bahut se viewers ko unki techniques se bahut fayda hoga. Thank you ❤❤❤❤❤❤

[@rajeshparmar7725]

Superb video with multi-asset management with Future with Hedging strategy.....Love you both for your mentorship, Vivek Bajaj & Govind Jhawar

[@Elearnmarkets]

Glad you liked it. Do Like, Share & Subscribe for more such content.

[@adityakumar-es9kn]

It's quite amazing video. Investment with peace of mind and return in long term much better than daily frustration by using option trading.

[@finideas]

Thank you for your valuable comments.

[@karamveersingh3417]

Wow! Wow! Wow!!! The more I learn, the less I know, that how much I know. Wow!! Too good.

[@Wick_Trader]

Vivek sir you are my first mentor in market. Thank you so much.

[@Prshri1430]

Govind Jhawar ji has in depth knowledge about his domain! Awesome f2f vivek ji. Thank you!

[@finideas]

Thank you for your valuable comments.

[@ashutoshvedak3575]

One of the best videos I have ever seen ❤

[@finideas]

@@ashutoshvedak3575 Glad to know that you like this concept.

[@AMITPARWALA]

@@finideas Kindly clear my doubt If we buy a future (from margin got from putting NIFTYBEES as collateral) and buy a put if the market goes down by 10% then put will just limit the loss of future but will never give extra money to buy NIFYBEES and we will lose the value of NIFTYBEES by 10%

[@vks880]

बहुत बार ऐसा होता है जब लगता है कि भैया मेरा दिमाग तो एकदम जीरो लेवल का है। सेल्यूट ऐसा वीडियो बनाने के लिए।

[@finideas]

Thank you for your valueable comment.

[@AryanKumar-ix3um]

@vivekbajaj sir ap great h kitna apna time dete h🙏🏻 real hero h sir

[@thepowerofdisciplinedtrading]

EXCELLENT VIDEO. THIS IS THE BEST AND DETAILED VIDEO I HAVE EVER SEEN. THANKS A TON VIVEK JI !

[@Elearnmarkets]

Glad it was helpful! Do Like, Share & Subscribe for more such content.

[@myblueocean12]

Nice video. Those who did not understand please watch the video again. He has answered all the questions including when to cover put

[@Elearnmarkets]

Thank you for watching the video. Do Like, Share & Subscribe.

[@whykoks]

​​​​@@ElearnmarketsI didn't understand the 70 lacs future part. 1. Zerodha asks for 50% cash/cash equivalents and 50% equity collateral for positional trades. 2. Also, does 70 lacs future means approx 7-8 lots of nifty monthly futures? Please answer.

[@bharatbhagwat8145]

I am an ETF investing person, after watching this video I got an idea to hedge

[@rangmehalfilms]

One of the best episode. Great Learning..

[@dilipgsagar]

Learnt something which is actually implementable in real life ! 👍👍

[@Movies00077]

Thanx a lot vivek ji . U are doing a great work. Helping to retailer..

[@Elearnmarkets]

Thanks and welcome!

[@maheshgupta5378]

Waah !! Vivek Bhai & Govind Babu....Absolutely Absolutely Marvelous Content

[@Elearnmarkets]

Glad you liked it. Do Like, Share & Subscribe for more such content.

[@finideas]

Thank you for your valuable comments.

[@thirupathisalveru5411]

Excellent session..Thank you both of you.

[@Elearnmarkets]

Thanks for listening! Do Like, Share & Subscribe for more such content.

[@kundan1980]

EXCELLENT VIDEO. THIS IS THE BEST AND DETAILED VIDEO I HAVE EVER SEEN.

[@finideas]

Thank you for your valuable comments.

[@rahulgupta-n5q]

maza aa gya .. pahle wala bhi dekha tha ,, actually i am also in real state mkt , so this strategy looks very facinating ... thx ...

[@finideas]

Thank you for your valuable comments.

[@rajivkamra6408]

Making 18 % from long with hedge.. Is nirvana ....sir best of business makes 10% only .. Best दहंदो !!! ❤

[@finideas]

Thank you for your valuable comments.

[@shantanurathor37]

Bhai 19% CAGR se juniorbees ETF grow Kiya h check it😂

[@sohilparikh32]

​@@shantanurathor37Bhai scalable nahi hai. Mere pass 5 crore rs ho toh me sare k juniorbees leke nahi beth sakta. Yaad rakhna juniorbees mein adani sahab hai

[@PratikPatel-wi7yh]

❤ 🙏🏼 thanks Siri for the valuable information.

[@sachindube5599]

bahut badiya.....bahut badiya.....bahut badiya......

[@yashovardhansinhjadeja3809]

too much knowledge to learn... is bhai saab ke sath to puri series banani chahiye...

[@ajeetpatel7745]

Thank you sir. Keep going on Face 2 Face ❤

[@Elearnmarkets]

Keep watching! Do Like, Share & Subscribe for more such content.

[@Emberdash_890]

Much love and respect for good work, thankyou

[@Elearnmarkets]

Much appreciated!

[@mayankvashist3326]

sir govind jhawar sir subject intricacy is phenomenal

[@imchess1]

Interview was very interesting. Govind is sounding confident but i guess there are better ways to hedge ur portfolio. The thing which was told, is very basic and used to popular 10 yra back. Enjoyed the conversation😊

[@AJAYSINGH-mp4yg]

Great video sir ❤❤ Sir Learn to trade ka student hu apka Ek bat btani thi apko Apki series ko ek bar dekh kr sharukh khan bnne ki kosish ki or 10 jagh Logo ki videos dekh kr Maine 50 k se learning shuru ki thi Or 10k ka nuksan khaya ek mhine m yani 20% loss , Bad m Ab Learn to trade phir 5 bar dekhi Jo jo gltia ki mehsoos hua ki apne Apni har video m jo position szing risk management per trade smzaya vo ni smza lekin dhake khane ke bad loss khane ke bad akal ayi ki ye to sir ne smzaya tha kash mze ke lie na video dekh kr sikh ke bar bar bar practice krta to nuksan na khata ab 2 mhine se vhi 50k h jo ab profit m he end of the day close hote h thank u for the learn to trade sir ❤❤ Ab,dream,h ki apse milna h but 1 cr profit krke

[@JAG0PAG]

Great! Thank you! A follow up question, Govindbhai’s method is that we use 70% of the capital to get an interest rate to fund the protective puts and 30% toward ETF/futures purchase. But over the years when the ETF size goes up , we will need more protective puts. But the 70% fund will remain the same and the interest rate we get from it will not change with time, correct? How is it sustainable in the long run?

[@finideas]

You have raised a good question. The answer is that whenever the ETF grows, futures will also generate cash profits. This, in turn, will automatically enhance the debt portion.

[@JAG0PAG]

@@finideasGovindbhai, could you illustrate that with a simple example?

[@finideas]

@@JAG0PAG Lets say you invest Rs. 1 crore as follows. Now the product can be seen as follows as well: 1. 30 lacs in equity + 30 lacs protection 2. 70 lacs in Futures + 70 lacs protection + 70 lacs in Debt Now lets say market moves from 10000 to 20000 , your exposure will be 2 crores & your hedging cost will be 20 lacs. Of this Rs. 5 lacs will be funded from interest generated in debt. Now question is how do you fund Rs. 15 lacs. Ans. When market will reach 20000, your profit will be 1 crore of which 30 lacs profit will be added in equity (non -cash) and 70 lacs will be profit from futures (cash). This 70 lacs fund will be sufficient enough to fund your additional requirement of hedging cost and the remaining funds can be parked in debt.

[@finideas]

@@JAG0PAG Lets say you invest Rs. 1 crore as follows. Now the product can be seen as follows as well: 1. 30 lacs in equity + 30 lacs protection 2. 70 lacs in Futures + 70 lacs protection + 70 lacs in Debt Now lets say market moves from 10000 to 20000 , your exposure will be 2 crores & your hedging cost will be 20 lacs. Of this Rs. 5 lacs will be funded from interest generated in debt. Now question is how do you fund Rs. 15 lacs. Ans. When market will reach 20000, your profit will be 1 crore of which 30 lacs profit will be added in equity (non -cash) and 70 lacs will be profit from futures (cash). This 70 lacs fund will be sufficient enough to fund your additional requirement of hedging cost and the remaining funds can be parked in debt.

[@relaxingnaturevideos2108]

Thanks Vivek ji for this broadcast. Privious video atleast 10 times dekha very interesting.til so many questions but very jabardast Please mention which brocker provide long term option to buy

[@Elearnmarkets]

Keep watching

[@manishmahajan4041]

Vivekji y video dekha bahut achha tha journaly apk sare video dekhakar hi mene market sikha he Lekin sir Jo hedge kar rahe he wo to bahut normal he Ap monthly future kharid kar monthly itm put kharid lijiy aur every month rollover kariye isme hi Kam ho jaega Thanks 🙏

[@finideas]

You raised a good point. Let's explain it. There are a few reasons to choose long-term synthetic futures and put options over monthly expiries. First, monthly put options are comparatively costlier than annual put options. Monthly options have a cost of 2-3%, while annual options cost around 4-5%. Second, you can roll over the annual position to the next year before the last month, avoiding the sharp decline in time value during the final month. Third, using long-term options provides peace of mind by eliminating the headache of monthly rollovers. Lastly, choosing synthetic futures helps avoid daily cash settlements for mark-to-market (MTM) adjustments.

[@chinnammand5956]

The annimation are too cool. Give a high five to the graphics guy in your team!

[@pranavinani94]

One of the best videos of the series.

[@Elearnmarkets]

Glad you liked it. Do Like, Share & Subscribe for more such content.

[@jainsc37]

Excellent and practical presentation. I have the following silly queries: 1. Which future is to be purchased? Near or far? 2. Why not follow the monthly future and hedge to buy in nifty also? 3. Which synthetic future to trade, near or far? 4. In case, partial investment say 30% is made in nifty20 and that becomes 1.5 times when renewal of insurance is due, what would be purchase value in futures?

[@SM-cy7xt]

Valuable better content. Better efforts 🎉🎉

[@memarket1675]

Beautiful strategy. Thank you so much for sharing. Protection part is eye opener.

[@Elearnmarkets]

My pleasure!

[@amandeepsharma5463]

- Future Premium or forwarding cost -7% per annum and Insurance (PE) cost -3% per annum so this strategy cost around -10%. - Lets assume that we get 5% FD interest (post tax) on 90% capital so our cost to run this strategy is -5% per annum. - This strategy will return only 7% equivalent to FD return if Nifty returns 12% per annum. - I will buy the market on crash. In back testing for 10 years, this strategy reduces the return by 4% after doing all the hard work. - Also, you may miss 13% dividend in 10 years which gives around 15% less return than buy and hold. - This strategy has only one advantage that it makes your holding less volatile. Please do share if I calculated it wrongly but I am keen to deploy this if this works.

[@kirangalani6236]

back test for 15 or 20 years , buy nifty bees & pay only for put premium 12 month expiry , so buy 11.50 lac nifty bees and buy 23,000 pe 2x = 30,000 rs , for hedge 11.50 lac portfolio ,

[@virendraprajapati9808]

this gives you advantage of leverage.2x limit is for AIF. individual can get upto10x

[@muralidharj9221]

Lovely discussion. Very insightful

[@Elearnmarkets]

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[@ak8140]

super video. I am still thinking how couldn't i noticed this till now. this video cost in lakhs.

[@Elearnmarkets]

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[@rajatjain8488]

Like many in the comments, I found this very interesting, especially if I do it myself as suggested by Govind. So I did some back-testing, from 1/1/2010 until 19/7/2024, using 3 scenarios i.e. buying either monthly puts, half-yearly puts or annual puts. For half-yearly and annual puts, I assumed the cost is 2.5% and 5% respectively, like mentioned by Govind. In both scenarios, I end up making less money than just buying NIFTYBEES on 04/Jan/2010 and holding it until today. Half-yearly return for 15% less and yearly return was 35% less. In case of monthly balancing, we can get at par returns only if cost of put is on average 1.4% at the beginning of the month. Anything above that, there is loss and vice versa. Maybe this strategy works when using options to mimic nifty but in itself, the hedging strategy for NIFTYBEES doesn't work.

[@srkjain2000]

Hi I was trying to test this as well and found it's less profitable. May be the way he executes makes the difference .that is why the advisary services. Can you please share your test result so that we can compare?

[@rajrani2251]

How about in a scenario where the market is in a downturn for 12-24 months or just moving sideways, no real significant upward movement?

[@Manik-n9g]

Thanks for your help valuable time knowledge for us again pranam 🙏🙏🙏

[@Elearnmarkets]

Always welcome! Do Like, Share & Subscribe for more such content.

[@shridhole]

Many right questions in the comment which need to be answered. 1.The overall returns from 2014 are 10%. 2. The actual premium for put option and synthetic future premium total will be close to 8-10%. 3. Buying put and synthetic future is equivalent to buying call for December. 4. Put opion exit due to deep itm is questionable. 5. Tax will be more for put option recoveries. 6. Overall thing can be simplified by buying call and pledging mutual funds or debt funds.

[@arj1165]

buying long term DTE options is a complex calculation in itself, as options are priced based on futures pricing and IV (vix) . Also buying puts to hedge your portfolio seems to be good theoretical practice, but in reality you cannot compare buiyng puts to buying insurance. Your timing of when to buy that put and analyzing market structures is the harder part. You could combine this with other hedging strategies like call ratios, bear spreads. instead of showing random dec put pricing , why not just show actual portfolio calculations , since he seem to suggest to be using this for so many years.

[@ravibabusarikonda4337]

Very good insights, great learning, thank you.

[@Elearnmarkets]

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[@akshayiyer9747]

Super and fantastic video! Very insightful.

[@Elearnmarkets]

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[@Babytoys111]

Very good knowledge sir ❤❤ thanks for this

[@vishalkumar6483]

Sir Ji, bahut hi acha content hai. Awesome

[@finideas]

Thank you for your valuable comments.

[@aks961983]

Theoretically it is shown that it works best but I have few questions: 1. When market goes down it shows that there is no loss but actually 30% tax loss was not considered on the income from hedged put 2. How to encash hedged PUT to increase the investment quantity with below limitation: a. If PUT becomes deep ITM due to crash like 2020, it will be highly illiquid to encash b. If you can not encash then you don't get the gain of buying PUT c. During bear market when you encash PUT then next hedge cost will be much more due to high VIX 3. We can not time the market so have to keep rolling over the PUT if market keeps going down, this can increase PUT cost due to increasing VIX at every roll over or pullback before correction so this can drastically increase the hedge cost

[@SouravKumar-ru8dx]

add on 30% taxes which ever you got profit from put side...he is just fooling people nothing else..i think covered call is much better option than this..

[@Meditrader]

Well, one is going to lose in PE option some years, and gain some other years, if you have had a loss first you can carry that over to be adjusted against any F&O gains for next 8 years, so a good part of the PE gains will be balanced out with losses you will incur on PEs.

[@Vidyasagarbb]

​@@Meditrader Not really. If the total profit earned on Put in say 10 years is same as total cost paid (Loss) on put then, technically, there is no profit or no loss from Put in 10 years. which is not the case here. so this is not correct answer. Correct answer may be that he is declaring long term puts as hedging hence treated as long term investment hence may be declared as 10% capital gain instead of 30% tax. That is the only option I can think of.,.

[@vipulmakani3059]

That’s exactly is my point too … this guys never traded and making fool of folks !

[@finideas]

You have raised some good points here. This will help people gain more clarity about the strategy. Let's explain them one by one: 1. When the market falls, puts will generate profits on the full 100% exposure, but this will be offset by the loss from 70% of the futures. Additionally, the premium paid for puts and the future forwarding cost will also be deducted, making it tax-friendly. 2. We generally shift the strikes before the put options become illiquid. However, if the put options do become illiquid, we can square them off with synthetic put options. 3. We should shift the puts, but we need to consider the cost-benefit of the shift. Regardless, at maturity, the puts will automatically be shifted.

[@techsolution277]

bahut Achcha explain kar rahe ho aap THANS

[@saurabhtomar5915]

For Individual stock you can calculate hedge ratio based on Beta of stock ,

[@Ankitgor123]

Goving sir youare too good man !

[@mohannath3503]

Congratulations for 1 million subscribers

[@007srikanth]

Wonderful video ❤❤❤ govind sir ❤️

[@finideas]

Thank you for your valuable comments.

[@shivanshyadav8021]

Yearly synthetic future buy karenge to yearly call buy put sell hoga aur hedge ke liye Yearly put buy hoga. Aur future interest cost bachane ke liye debt funds me buy karege

[@Ryan_online]

Congratulations Bajaj sahab for 1M

[@Elearnmarkets]

Thank You! Do Like, Share & Subscribe.

[@Marketsvibe]

Thank You So Much

[@ravindraprakashhans370]

Very nice. Congratulations to both of you. I have one question You are saying that when market goes down that time you book profit in put and increase your investment by using this money. But the next put we have to buy for hedging will also be costlier and our cost of hedging will increase. So the gain in put is not actually gain. That will need more money. Second point , please mention which month series future shall be bought for this strategy. Thank you so much. Near far etc.

[@burkhan123]

you will be buying ATM Next month expiry put . Then the price should be lower than your profit booked ITM put of current month expiry.

[@finideas]

Dear @ravindraprakashhans ji 1. When market goes down say from 22000 to 10000 then your 22000 put will be worth 12000 and your 10000 put will be trading at around 500-700 depending on what time of year this happens. So you will have sufficient inflow to add equity at lower levels 2. As soon as you introduce synthetic future in investment, you see a lot many futures at various strikes & expiries. Depending on the which synthetic future is running at most logical cost, the synthetic future strike & expiry is purchased. It may vary from quarterly synthetic to December synthetic

[@noproblem1607]

Initial capital : Rs 6,00,000(6 lac) 30 % ETF : Rs 1,80,000 70% bond : Rs 4,20,000 put 180000 from ETF as collateral you get margin Rs 1,44,000 In Rs 1,44,000 buy 1 lot NIFTY FUT (cost will be around 65k) and 1 lot PUT option (cost will be around 15k)

[@finideas]

When taking the exposure of only 1 lot, we recommend not buying ETFs as it will be an unhedged position. Instead, you can park 90% of the amount in debt instruments and purchase 1 lot of Nifty Futures by pledging the debt. Use the remaining 10% of the amount to manage hedging and forwarding costs.

[@vivekmudgalglobalcitizen.1279]

👏👏👏👏 Congratulations 👏👏👏

[@letsgoconsultants]

Well even if I agree to his point then tell me how do I know at what point do I square off my Puts and put the money into ETF? How do i know that market has hit the bottom?

[@AMITPARWALA]

Kindly clear my doubt If we buy a future (from margin got from putting NIFTYBEES as collateral) and buy a put if the market goes down by 10% then put will just limit the loss of future but will never give extra money to buy NIFYBEES and we will lose the value of NIFTYBEES by 10%

[@bongcooker274]

Mey options mey trade nehi karta aur age karna bhi nehi hai ..😅 It seems kind of complications...aaj ka video dekar aur bhi dar lag geya.. sir mey toh audience ko bolunga stockedge❤❤ ka premium lelo breath dekho invest karo..mast raho

[@nikashcreations2772]

Govind sir very good video and thank you Vivek sir one query if mkt is trading on 24500 now in nifty and we have synthetic future of 24500 and buy put of 24500 for hedging,.. now suppose mkt crashes to 23500, so at that time to excercise insurance 😊, do I need to flip only put of 24500 and buy new put of 23500 , or I should flip both synthetic fut and put both and buy new position at 23500 for both synthetic fut and put at strike price of 23500?

[@pankajjain8782]

Sir thanks for details explanation and video. One query, when to move to next month on synthetic future , lets say we bought synthetic future on 3rd May (for 30th May nifty strike price 22500 call buy and put sell) and we bought 22700 put also for hedging, then on 29th may we should roll over on 29th May or on 20th May or when? to next month June.

[@finideas]

Good question. This will provide more clarification for others as well. The answer is as follows: As we explained in the video, we will purchase the December month synthetic futures and hedging. Generally, next year's options also gain liquidity around November. Hence, we roll over the position in November. The second advantage is that we don't have to pay for the sharp decline in the options' time value during the last month.

[@vikaspeshawaria7570]

nice session.... high vix...calendar spread

[@knoweverythingA2Z]

Extremely helpful f2f . Only 1 question that was asked by vivek sir that instead of index investment if someone wants to hedge stock portfolio then? In my case the portfolio beta is 0.8 then considering nifty beta as 1 ., how should I hedge by buying put option? I understand that my portfolio is less risky compared to nifty.... Please guide....

[@finideas]

It is difficult to answer this question without actually knowing your portfolio because beta in itself has fallacies in itself. When we say beta, we mean that if the market goes up it will rise at a speed of 80% of index and if the market goes down it will fall at a speed of 80% of index fall. If this is the case then generally it is a better idea to shift to Index itself as that way loose hedge errors can be easily avoided. Loose hedge errors are events wherein hedging has been done by just matching beta and it has resulted in unhedged-like scenarios. For example you might find Reliance being correlated with index at say 1.2 now if you buy 1.2 times the quantity of Nifty puts then there may be cases when Reliance went up while index went down and you made money on both trades. The only problem is when Reliance dropped & market went up, the whole purpose of hedging goes for a toss.

[@knoweverythingA2Z]

@@finideas thanks.. That sounds practical.. Will certainly have brainstorming in this matter and find suitable option..

[@Sonkal23]

This works theoretically. Not practically. When market falls, we never know where is the bottom. So we can never encash at bottom.

[@ps7857]

Correct. Govindji is assuming that we will exit at the exact bottom. Also Markets dont fall in a straight line. There are strong intraday pullbacks which can make one exit

[@Sonkal23]

Exactly

[@vijoykumar5379]

You have to squire off your position in Dec only

[@maverick1244]

See the video in full. Go to 51:55 time stamp. He answers this with value added approach

[@Sonkal23]

He said that at this time. I agree. But his calculation is not based on that. That is based on bottom. Not December time frame.

[@thanika1999]

In relax plan, the Future buy will give MTM losses during down-move and the insurance PUT will give same amount as gain, making it net zero. So the Units will not grow from the future part (70%). The units can grow only from the (30%) ETF part, as the losses are not booked in ETF, and the gains from PUT can be used to buy new ETF units. In case of Future (70%) part, the MTM losses will be equal to the PUT gain - so net zero. We just end-up paying more insurance as cost. Am i missing something?🤔

[@finideas]

Dear Thanika, Lets understand this with an example. Say you started with 1 crore investment as follows: a. 30 lacs in Equity + 30 lacs protection in put b. 70 lacs from future + 70 lacs protection from Put + 70 lacs parked in Debt Market was at say 20000 and moved to 10000 a. Equity + Put -> In this part, working is simple -> the Puts will generate 15 lacs in free cash which can be deployed to purchase Equity b. Future+Put+Debt -> Here your understanding is correct that Put will just offset the loss on future so practically no outflow in Future. Now, your "b" part will look like 0 + 70 Lacs in debt = 70 Lacs NLV -> This much exposure will again be taken in Future + Put BUT NOW The entry level of future will be 10000. So now if market moves back to 20000, your NLV goes to 1.4 cr (70Lacs on Debt + 70 lacs on future - cost of protection) Not losing money on future when market goes down, is inherently a lot of profit for us when market recovers. Hope your query is resolved. If you need more clarification, kindly visit bit.ly/iltsmgt-i

[@krishagartala09]

number of put is 100 and number of future is 70. that 30 extra put profit will be used to buy etf.

[@sbsujeet]

Then it is better to do only 30... Not 100

[@krishagartala09]

@@sbsujeet in that case it will not cover future loss.

[@sbsujeet]

@@krishagartala09 Should not do any future, only etf with hedge

[@ravbaj84]

Very interesting I have few questions, could you please help me to understand 1. 70 % debt , can I use SGB Gold 2. Can we do same with MF like Index MF or small cap MF where I can buy these funds and hedge with Put, or MicapNifty put

[@finideas]

1. We are parking in debt as we need to generate interest to fund our financing & hedging cost. If you are confident enough that SGB Gold will generate sufficient cash to fund the above, you can very well invest in SGBs. 2. You can think this in terms of buying a mercedes and protecting the same with insurance of Maruti 800. You have insurance but they may behave very differently wherein sometime small cap will rise & index will fall & you will have benefit on both trades. And sometimes, small cap will fall while index will rise & you will lose on both. In either case the purpose of hedging is defied. For short term trading, Beta based workings might work good but in long term investing this looks difficult to serve the purpose.

[@stanyrebello9976]

Vivekji good video , without watching vix people trading option . loose money .Thank you.

[@Elearnmarkets]

All the best

[@DeepmShah]

📌current nifty price 22466 to muje 22450 ka decamber 2024 ka put buy karna he 1 lot (25 qty) 📌and samne mere ko nifty ke etf buy karne he 22466×25= 561650 itne Rs. Ka etf buy karna he Ye thik hai sir

[@nitinjain3326]

Yes

[@pradhirp1636]

Bhai I m not sure on 5 lahk we aren’t making profit on monthly basis? This is far more easy but ? Is it worth it. ?

[@finideas]

@@pradhirp1636If you are targeting short term trading money-> this strategy is not worth investing. This strategy is ideally suitable for funds that are kept for long term with a risk target of nothing beyond 5-10 % and return target of 15-18%. If that kind of fund is parked, you dont need to generate monthly returns as idea then is to hold index for long term with protection to survive the long term.

[@chandrayan18]

Thanks to both maha guru 🙏🙏

[@finideas]

Thank you for your valuable comments.

[@utuberpraveen984]

Thanks to your... I got introduced to GC....I will say every trader should have a trade going with finidea Thank you VB

[@Elearnmarkets]

Thank you for watching the video. Do Like, Share & Subscribe.

[@UnorthodoxFellow]

That's the exact goal of this video. 😭😭

[@MRShastriCricket]

41:07 bro how come the cagr from 2014 is 18% I calculated the return from the sheet you have shared from 2014-2023 the cagr is 11.8%, Just clarify or don't mislead the crowd. Vivek ji please check whatever the person coming for F2F is saying, just cross check with the help of your team and seek clarification.

[@srikanta92]

I m doing this from last 2 yr...

[@finideas]

Thank you sir. We are glad to have clients like you.

[@Nutannaik-c2r]

Result kya hua

[@Nutannaik-c2r]

Return kitna bana hai

[@sachinnema1]

Sir aap put kaha cover karoge nifty 12000 se gir raha hai 11000 10000 9000 aap kahi cover nahi kar paoge kyoki iski kya stratagy hai??

[@achaudhary311]

Vivek ji and Govind ji, can we use this strategy wiith Nifty Next 50 ETF?

[@vijaybalaji7290]

thanks , informative

[@Manishkrgarg-dh9ze]

Can you explain how will you buy a nifty ETF at par, Nifty bees trade at substantial Premium to nifty spot whereas the put options you are highlighting here to arrive at your hedging cost are based in nifty current price. In practice nifty bees trade at more than 1000 points premium to nifty spot.

[@finideas]

Dear Manishji Your point is that Nifty bees trade at say around 240 when index trades around 22500, so how is it possible to buy Nifty ETF at par. Ans. The question has arose because it is a general notion that Nifty BEES are 1/100th portion of Nifty which is not correct. The reason for difference in Nifty bees price & index is because Nifty bees actually holds the index constituents and keep on receiving various payouts including dividend. Now till the dividend is not distributed by Nifty bees that much NAV of Nifty bees is bound to rise and hence the price of Nifty BEES goes disproportionate as far as ratio of 1/100th is concerned. But if you match value then there is no concern ie if you want to purchase Rs. 30 lacs worth Nifty - buy NiftyBEES worth Rs. 30 lacs and your rise in NIFTY will be matched by NIFTY BEES.

[@amitawasthi2826]

very nice. thanks ..

[@manishbdave]

Can we pledge existing MF portfolio and FD as collateral? Nice concept and very well explained.

[@MaheshMohalkar]

Yes, you can pledge mutual funds for collateral if they're in demat format and allowed by your broker to pledge.

[@shashidharreddy2959]

1st you said kali call lene me maja nahi hai. then you said we can make synthetic future by buying call and selling put. then you said buy put for protection.🙄 I am not expert in derivative. but if I sell put and then buy put for protection, isn't is like there is no put. only call buy from synthetic future left. so finally, we are just buying call! Please some one clarify

[@finideas]

Thank you for the comment. You raised a good question. As we explained in the video at 52:45, the strike price for the synthetic futures will be different as it also includes the forwarding cost. On the other hand, we want hedging from the current level, so we will purchase ATM put options at the current level. Overall, the strike prices for the synthetic futures and the hedging puts will be different.

[@jaiprakashmvyas5956]

Synthtic future next strike price का बना लिया जाए तो शायद आपकी problem solve हो जाएगी May be

[@finideas]

Ans. There are 3 reasons for that Tax prudence - Investing in equity & keep shifting the profits to ETF will tend to have lower tax than what you are suggesting When the market goes up - You would want to lock your profits by shifting to higher strikes. ITM call will be difficult to trade as against an OTM Put (as in the case of of this strategy) No opportunity to reduce cost by using Synthetic future - You can buy a September synthetic and December put, if September Synthetic is cheaper. Similarly, you can buy different strike synthetic if that is cheaper. So if you are using only call, you are leaving money on table to reduce the cost

[@vijayreddy770]

Very informative 🎉🎉🎉🎉

[@dhrumil2346]

great mentor you both

[@sbsujeet]

Should we buy both 22000PE and 23000PE?? As in the downfall profit of ITM 23000PE profit will be setoff by loss in synthetic future... So profit realised during downfall from 22000PE can be reinvested?? Please explain

[@imsiddharth_39]

Hello Sir, thank you for growing our knowledge, Sir mai 10 lac investment kar sakta hu...bt muje samj nahi aaya k bankbees kitna lena hai,aur konsa put buy karna chahiye?pls help me for this. Thank you

[@finideas]

Ideally this strategy be run with long term options which is liquid in Nifty. For BankNifty investment, a better ideas is to invest using AIFs as it will have to be hedged using monthly options which are pretty costly to trade

[@ravindraprakashhans370]

If we have future long and put long and if market drops them effectively we loose money may be by fix amount. Then how to increase your portfolio by considering only put profit? Yes if we buy one more put seeing the crash possible then profit of one put can be used. One future long plus two puts makes it a bi-directional strategy.

[@finideas]

Lets understand this with an example. Say you started with 1 crore investment as follows: a. 30 lacs in Equity + 30 lacs protection in put b. 70 lacs from future + 70 lacs protection from Put + 70 lacs parked in Debt Market was at say 20000 and moved to 10000 a. Equity + Put -> In this part, working is simple -> the Puts will generate 15 lacs in free cash which can be deployed to purchase Equity b. Future+Put+Debt -> Here your understanding is correct that Put will just offset the loss on future so practically no outflow in Future. Now, your "b" part will look like 0 + 70 Lacs in debt = 70 Lacs NLV -> This much exposure will again be taken in Future + Put BUT NOW The entry level of future will be 10000. So now if market moves back to 20000, your NLV goes to 1.4 cr (70Lacs on Debt + 70 lacs on future - cost of protection) Not losing money on future when market goes down, is inherently a lot of profit for us when market recovers. Hope your query is resolved. If you need more clarification, kindly visit bit.ly/iltsmgt-i

[@NeerajGupta-tq6od]

In the year where market falls and Put gives you good profit, govt. will take 30% of that profit as tax from business income.

[@finideas]

When market falls down, Puts will earn money on full 100% exposure but simultaneously it will get deduction of loss from 70% Futures. Further premium paid for Puts and Future forwarding cost will also be claimed as deduction. So it will automatically become tax friendly.

[@shashidharreddy2959]

why dont I put 100% in debt. I will get 7% interest. using that 5% interest I buy Dec call option. If market falls, only 5% premium loss. But if market rises, I get the profit. book profit and put in debt. And If market really falls, I have 100% money in debt, I can invest in the nifty till it recoveres.

[@bharatsarda0313]

Sir mujhe thoda confusion ho raha hai ki put kharidana hai dec ka , lekin kis k against kharida ? Kya zawar sir ne future k against bola ya aur kuch hai,?

[@rupeshdave7692]

Synthetic future konse strike price aur konsi expiry ka karna he pls reply

[@12varshney]

Synthetic future means + call - put and if you buy put then put- put = zero that means only buy call . With ETF it makes sense but with synthetic future it is only buy call

[@Vidyasagarbb]

Exactly but what happens is that the strategy ensures cash flow issue does not arise because, if market falls consistently for say 4 years or 4 months (in case of monthly options), then the money would go out of pocket till its gained back in 5th year. Hence only cash flow positive impact. But again, when he buys synthetic future instead of ETF, then tax will ideally be 30%. so, post tax returns are meagre.,.

[@Vipul.Canada]

when to cover put? if market going down and put prices increase , we sell put and market goes futher down.

[@SuneelKumardentist]

Buy ETF and buy monthly ATM put. When market falls, stick to same put strike for next month also. When market trends up, trail the put strike up

[@ashwinsinghal3179]

Rather than taking futures and all, rather put it in NIFTY BEES. Nifty has a dividend yield of close to 1% which got reinvested in the same and with futures you will not get that. Your hedging cost can be reduced like that as well.

[@finideas]

The idea behind this strategy is to protect our funds during severe market downturns, such as the one caused by the coronavirus pandemic. When the market falls, put options offer two major advantages that direct ETF investments cannot. First, they provide profits that offset the losses in Nifty ETFs and futures. Second, these profits can be used to purchase more Nifty at lower levels without requiring additional investment from our pocket. Additionally, we utilize interest arbitrage through a combination of debt and futures to reduce costs. The overall impact is significant. While ETFs yield a 14-15% CAGR, including dividends, this strategy yields 18-20% CAGR in the long run.

[@navneetgupta8942]

Thanks for this good video on interesting concept. I have one additional question. With example of 1cr, returns on debt fund or any other investment to cover rollover cost is on 70 lakhs. As the return is consumed to pay for hedging and rollover, 70lakhs investment is not compounding. However, Index future will grow with time, due to this hedging cost and rollover cost keeps increasing (in percentage of strike price). Over the period of time, 70lakhs investment returns will be much smaller than the cost of hedging and rollover cost. How you handle it in this strategy?

[@finideas]

When market will grow, your index future will keep on generating cash. This cash will be sufficient enough to fund your protection and hedging cost on higher levels. Further, the question is assuming that market will just keep on going up & there wont be any drop in market. If on a 10 years scale there are 2 dips of 30-40%, then your puts will have added enought NLV to your portfolio to fund any requirements of money for protection & rollover on later stage

[@navneetgupta8942]

@@finideas Thanks for the reply. So, 18% return mentioned in the video is post this expense (protection and rollover) consumed from the cash generated by strategy.

[@finideas]

@@navneetgupta8942 Yes the CAGR is after considering all the expenses.

[@vikaslondhe8600]

Best strategy But not in live market coz No liquidity in future strike price, can you showing in live market as practical? Please reply......

[@kundanbag]

very nice thanks