Hedge Insurance for Nifty Index fall of 10% (3 Month)

67% return in 10% fall of Nifty (3 M)
Be happy when market falls next time. Hedge your portfolio with downside gains

Earn profit when Nifty falls by 10% in next 3 months A fall of 10% in nifty should be approximately at levels of 16000. The strategy generates 67% return, if Nifty falls and closes at 16000 on 29th March of year 2023.

Just one time trade, Executed in your own broker’s Demat account. Our work is to guide you via Email. Follow up on bi-weekly basis.
Dedicated Relationship manager.

Minimum Capital

1 Lakh rupees

Holding Period

Ends on date 29 March 2023

Risk Profile

Fees
1000 rupees/Lakh + GST 

Max Profit on 1 Lakh

67 Thousand Rupees

Max Loss on 1 lakh

7 Thousand Five Hundred Rupees

Max Profit in Percentage

67% 

Max Loss in Percentage

– 7.5 %

Maximum Profit Condition

If Nifty closes at 16000 on date 29th March 2023

Maximum Loss Condition

If Nifty closes anywhere above 17500 on date 29th March 2023

Asset Used

     Nifty Index Options

Ends On

29 March 2023

Profit Zone

Nifty close at  12000 ( – 33% down )

( +16% ) 16 thousand rupees

Nifty close at 13000 ( – 27% down )

( +16% ) 16 thousand rupees

Nifty close at 14000 ( – 22% down )

( +16% ) 16 thousand rupees

Nifty close at 15000 ( -16 % down )

( +16% ) 16 thousand rupees

Nifty close at 15500 ( – 14% down )

( +40% ) 40 thousand rupees

Nifty close at 16000 ( – 11% down )

( +67% ) 67 thousand rupees

Nifty close at 16500 ( – 8% down )

( +40% ) 40 thousand rupees

Nifty close at 17000 ( – 5% down )

( +16% ) 16 thousand rupees

Nifty close above 17500 will have a fixed loss of
7 thousand five hundred rupees, per 1 lakh

00

Other Details

Parties Involved?

  1. MoneyDhan Investment Advisory ;
    Gives you the guidance about how to execute the strategy. All communications is made through Email.
  2. Your Stock Broker ;
    Zerodha, upstock, groww or any of those brokers you have account, executes the trade in your own account. You trust broker with your capital.
  3. National Stock Exchange ;
    The options contract executed on your behalf by the broker is , honoured by NSE. The pay-off comes from NSE to the broker who transfers it to your bank account eventually.

Summary

Asset used:
Nifty Index Options

Minimum Capital Required :
1 Lakh Rupees is required

Entry Load :
NIl

Exit Load :
NIL

Tenor :
3 Months , ends in March 2023

Max Profit capped :
Yes. Max Profit is capped.

Max Loss capped :
Yes. Max Loss is also capped.

Lock- in :
NO Lock-in.
Pre-Mature exit is based on pro-rata

Fees :
1,000 Rs + Gst 

Risk ?

  1. Liquidity Risk
    There is no liquidity Risk here. You can enter and exit this position at will. However, your must hold the options contract till its pre-determined expiry date so as to get the pre-defined Payment structure.
  2. Credit Risk
    The pay-off is guaranteed by NSE and Central Clearing members. Default risk is none. NSE has never defaulted in its settlement till date.
  3. Fraud Risk
    Do not share your login details to bank or Broker account with anyone. Broker cannot touch your money for personal use anymore. SEBI has made sure of that.
  4. Broker Risk
    Keep the required capital with the broker all the time. If there is capital short-fall, broker can ask his Risk Management System (RMS) to square off the position. Therefore, it is your duty to keep the required cash balance to maintain the security deposit (margin)

Yes you can exit any time.
obviously you would like to exit with peak maximum profit here. Unfortunately, the above mentioned pay-off will get be realised only if you hold the contract till its expiry date. In between exit will give your returns on pro-rata basis. Depends on the Live market prices on that particular date and time. 

The product has an end date when the position is cut off by the broker.

Ideally you can subscribe to this any time. But, if the outcome falls out of favour, we will provide you with alternate positions to be taken.

The risk to reward ratio will change just a bit, depending on which date you enter and how close we are, to the expiry day (cut off date)