Education
PCR Trading Strategy
Hedging with Options
Hedging protects your portfolio.
Portfolio Hedge with Index Options
Buy index puts to protect against market crashes.
Example: NIFTY at 20,000, buy 19,800 PE to offset losses in stocks.
Covered Puts for Short Positions
For traders shorting stocks, selling puts can hedge upside risk.
Advanced Option Concepts in Trading
To master strategies, you must understand Option Greeks:
Delta – Measures price change sensitivity.
Gamma – Measures delta’s rate of change.
Theta – Time decay rate.
Vega – Sensitivity to volatility changes.
Rho – Interest rate sensitivity.
Example: If you’re buying options before a big earnings announcement, Vega is crucial — higher volatility increases option value.
Hedging protects your portfolio.
Portfolio Hedge with Index Options
Buy index puts to protect against market crashes.
Example: NIFTY at 20,000, buy 19,800 PE to offset losses in stocks.
Covered Puts for Short Positions
For traders shorting stocks, selling puts can hedge upside risk.
Advanced Option Concepts in Trading
To master strategies, you must understand Option Greeks:
Delta – Measures price change sensitivity.
Gamma – Measures delta’s rate of change.
Theta – Time decay rate.
Vega – Sensitivity to volatility changes.
Rho – Interest rate sensitivity.
Example: If you’re buying options before a big earnings announcement, Vega is crucial — higher volatility increases option value.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.