Tuesday, June 2, 2020

BankNifty Hedging Based Strategy

Idea
Strong stocks don't fall as much as other stocks and they go up much more as compared to weak stocks.

Strategy
In BankNifty we can use this concept by

Selling Put of HDFCBANK, KOTAKBANK, ICICIBANK 2-3% strike away and hedging it by buying 3 lots of Banknifty at 3.5%-4.5% price away.

https://optionsnext.com/money-in-the-bank-testing-of-assumptions-by-mr-sumoy-goswami/

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