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.

[@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.

[@karamveersingh3417]

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

[@Movies00077]

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

[@Elearnmarkets]

Thanks and welcome!

[@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.

[@Wick_Trader]

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

[@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 ❤❤❤❤❤❤

[@rangmehalfilms]

One of the best episode. Great Learning..

[@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.

[@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.

[@PratikPatel-wi7yh]

❤ 🙏🏼 thanks Siri for the valuable information.

[@kundan1980]

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

[@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.

[@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

[@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.

[@dilipgsagar]

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

[@AryanKumar-ix3um]

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

[@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

[@Marketsvibe]

Thank You So Much

[@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.

[@sachindube5599]

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

[@Emberdash_890]

Much love and respect for good work, thankyou

[@Elearnmarkets]

Much appreciated!

[@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😊

[@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

[@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

[@ajeetpatel7745]

Thank you sir. Keep going on Face 2 Face ❤

[@Elearnmarkets]

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

[@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.

[@akshayiyer9747]

Super and fantastic video! Very insightful.

[@Elearnmarkets]

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

[@avinashshrivastava1512]

Synthetic future is equivalent to 35:15 future and future is equivalent to deep ITM call buy option then we can buy simply deep ITM instead synthetic future please correct me if am wrong

[@srkjain2000]

I think from collateral margin you can't buy options. You can use it for selling options or future . So if you buy itm option you need to extra cash

[@mayankvashist3326]

sir govind jhawar sir subject intricacy is phenomenal

[@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?

[@muralidharj9221]

Lovely discussion. Very insightful

[@Elearnmarkets]

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

[@memarket1675]

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

[@Elearnmarkets]

My pleasure!

[@chinnammand5956]

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

[@yashovardhansinhjadeja3809]

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

[@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

[@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.

[@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?

[@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..

[@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,?

[@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

[@Manik-n9g]

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

[@Elearnmarkets]

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

[@ravibabusarikonda4337]

Very good insights, great learning, thank you.

[@Elearnmarkets]

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

[@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?

[@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

[@kurbilav]

Synthetic Futures creation will be of recent expiry or Long term expiry

[@finideas]

@kurbilav this will depend on which synthetic future is running at logical cost. It may vary from quarterly to December expiry

[@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.

[@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.

[@mehulharkawat]

@finideas Sir, I have a higher risk taking capacity so can't i use this startefy and allocate funds 50-50 in Index and Debt? what's your opinion on this.

[@MaheshMohalkar]

We expect you to generate 8-9% indicative interest on the remaining funds and it's not advised to take higher risk on that investment. If you want to take leverage in risk-managed manner, you can opt for our AIF product where we take 2x leverage on your investment.

[@achaudhary311]

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

[@ak8140]

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

[@Elearnmarkets]

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

[@saurabhtomar5915]

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

[@mohannath3503]

Congratulations for 1 million subscribers

[@sandeepgarg6514]

How can we increase units , suppose marke falls 2_3 points

[@vivekmudgalglobalcitizen.1279]

👏👏👏👏 Congratulations 👏👏👏

[@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.

[@pranavinani94]

One of the best videos of the series.

[@Elearnmarkets]

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

[@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

[@Vipul.Canada]

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

[@KulbirSingh-vp7wn]

Hello sir can u do put back spread for protection

[@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.

[@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

[@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%

[@sumitkundu550]

On expiry amount got from put should be invested in etf.

[@AMITPARWALA]

@@sumitkundu550 Put will not give any money it will just neutralize the loss coming from future

[@techsolution277]

bahut Achcha explain kar rahe ho aap THANS

[@Babytoys111]

Very good knowledge sir ❤❤ thanks for this

[@007srikanth]

Wonderful video ❤❤❤ govind sir ❤️

[@finideas]

Thank you for your valuable comments.

[@rupeshdave7692]

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

[@SM-cy7xt]

Valuable better content. Better efforts 🎉🎉

[@RushabTranceNation]

Vivek bhaiya - pls send link which you were talking to go ahead with PMS Services with govind ji

[@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.

[@Ryan_online]

Congratulations Bajaj sahab for 1M

[@Elearnmarkets]

Thank You! Do Like, Share & Subscribe.

[@avinashshrivastava1512]

Can we create synthetic future with pledged margin?

[@vishalkumar6483]

Sir Ji, bahut hi acha content hai. Awesome

[@finideas]

Thank you for your valuable comments.

[@cancerworld5141]

Can we do. in midcap index ?

[@skoolonline]

What is free float 7:50

[@tusharnikam1611]

When and how to book the profit on put (hedge) side is missing

[@finideas]

Dear tushar, we need to first clarify the objective of investment as investment strategy changes as per the objective. If you are looking on puts as short term trading opportunity then you must definitely have a profit booking plan for the puts. But if you are looking to generate returns of equity with safety of FD then you need to hold protection till you are invested. Investing in this way will remove fear from investment thus allowing us to remain invested for long term.

[@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.

[@santoshsahoo7075]

Sir Nifty bee le sakte hai future ki badle

[@finideas]

Can be taken. The only disadvantage is you are leaving interest arbitrage on table which reduces cost by 1.5-2% which can be very handy when market is in a range and in absolute terms will have huge difference in long term

[@yashrathi318]

I have a question, Why not i can buy say 1 crore nifty ETF and to hedge it buy 400 qty of put option assuming spot nifty at 25000 so 25000*400=1 crore exposure.

[@srkjain2000]

You can do this to keep this simple But now your cost is 5% every year so you need to have 5 lakhs from outside portfolio added every year. Which will get cover in long terms whenever market crashes. But he divided money between eft and debt for protection. He is keeping the etf collateral to get margin to buy future to make portfolio again for 1 crore to generate extra cash though it's complicated but he trying use money twice. I think this requires correct execution

[@chiragkorat3283]

Sir, Collateral matlab pledged right???? Par pledged ka margin use krne par to broker 0.049% per day charge karta hai....

[@monusonu4851]

Can it be implemented to monthly stock also

[@Ankitgor123]

Goving sir youare too good man !

[@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

[@niravsavaliya3458]

When exactly to book in put? Cause all depends on that

[@girishm2136]

Real question ❓ Vivek sir, Please answer the million dollar question

[@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

[@hyperintelligentmanoj2189]

Where is the calculations for interest paid on margin limit used which broker provided against colatral ?

[@nandya]

Quick question: For the long term path, do you suggest to invest on Jan 1 or around that using December Expiry to protect for that year and repeat every start of Jan?

[@Vidyasagarbb]

You can do that even now because the yearly Option is slowly discounted as the time goes. Its more or less linear with the DTE. But I use even better version of this & doing this since last couple of years which makes double or even more % return. I developed it myself & right now 100% of my capital is invested in because the risk is Nil. I don't know why He did not explore that option.,.

[@finideas]

The success in this strategy is more defined not by timing the market but by "Time in the market". As this is a long term strategy, starting investment on any day of the year works fine. The protection cost might be a bit proportionately high for that particular year but in a journey of 10 year this first year higher cost will have very low impact. But earlier you start your journey, the better result it can generate for you over the years.

[@sandeepgarg6514]

Bro​@@Vidyasagarbb, I have one question in my mind, suppose market falls 2000 point, what will the next step, how to increase the units

[@Vidyasagarbb]

@@sandeepgarg6514 If market falls 2000 points, your investment is in loss but almost equal amount is gained as profit in put you bought. So, you book that profit & buy more Qty of your investments with that profit. Hence you have more units/shares despite market falling. So you will gain much more when market increases again. hope you got it. its very very simple.,.

[@Vidyasagarbb]

@@sandeepgarg6514 simple. Sell put which are in profit and then buy more units of nifty. That’s what he said.

[@pankajmittal9457]

When to book profit in put?

[@hiteshhmalik388]

In synthetic future your a re buying a call and then selling a put and again for protection you are buying a put. One put sell and one put buy nullifing each other. In the nut shell you have bought a call only, isn't it? Then where is the protection?

[@finideas]

You are right when you see things theoretically. But as you understand the same thing will behave differently depending on how one uses it. An option can be used for speculation and the same thing can be used for hedging. Similarly buying a call option and buying a synthetic future with hedging works a whole lot different. To understand this, we need to understand why synthetic future was being used. We bought futures as they were having low financing costs. To avoid the disadvantages of futures we moved to a synthetic future. So the purpose of buying synthetic futures is to reduce our funding cost. Now, when you invest using synthetic future, you have a multiplicity of strikes and multiplicity of expiries. Now, say June synthetic future is cheaper than December future, then simply buying a December call will not match the results. Similar is the case when the market goes up - an OTM put will have a fast-shifting opportunity as compared to an ITM Call. So theoretically they may seem similar but they have a lot of differences in real-life situations.

[@shahakshay7357]

Wich expiry i futucher buy and wich expiry i buy put

[@GaurangGurjar]

Delta of 0.5 long term options me hoga to adha hi cover hoga na? Wo part acchese samjhao please

[@utubemanan]

tabhi to bol rhe hain ki 5% premium cost separate lagegi..don't adjust premium with delta....premuim alag se de rhe ho to uske baad delta to 1 hi hua naa..

[@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

[@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.

[@sagarjethwa6182]

i have seen this video previously also. its old video. is it correct vivek sir?

[@Meditrader]

I am a huge fan of StockEdge/ Elearnmarkets. I had seen the last video of yours with Govind jee, have deployed some funds in Nifty yearly strategy Jan this year, and am sitting on some profit there. For the advanced strategy in Bank Nifty monthly options, if I create a synthetic future by buying a call option (CE) and selling a put option (PE), and then buy a put option (PE) as insurance, the sell PE and buy PE cancel each other out. This leaves me with only the call options for the month. As a result, this strategy effectively translates into buying call options and rolling them over each month. Am I missing something there?

[@chukoovava]

i think you missed Mr.Jhawars explanation...if you keep buying call if market does not go up for few periods...you might end up losing the premium which will affect your returns

[@Meditrader]

@@chukoovava Sir, I understand that part but you missed my query, please consider the scenario above of synthetic futures, where puts bought as insurance get cancelled out by the puts sold for synthetic future, and what remains is only calls. Please reflect on synthetic futures, and you will understand my query. Thanks for replying btw.

[@rohitbhatt4991]

@@MeditraderSay you bought 22000 dec put as insurance when market is 23000. If market goes down say from 23000 to 18000 in july, then sell put which was bought as insurance and at the same time buy 18000 dec put as insurance against further fall. Difference between 22000 put sold and 18000 put bought can be used to buy new etf at 18000 level. Forget about synthentic future till november when it will be rolled over to next year . As you do not sell 30% etf, even market goes down 23000 to 18000, on similar line you should treat synthetic future as 70% etf only and not think of selling till it is time to roll over to next year.