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?
- MoneyDhan Investment Advisory ;
Gives you the guidance about how to execute the strategy. All communications is made through Email. - 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. - 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 ?
- 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. - 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. - 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. - 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)
