Four ways to hedge your equity portfolio 🛡️

With markets making a new ATH, the age-old question comes back again: will the rally persist, or are we on the brink of a market crash?

Frankly, I don't know, But I can offer an intelligent solution – i.e. hedging your portfolio.
Hedging is akin to buying insurance for your investments.

In this thread, I share four ways for you to do it. Intrigued?

Grab your coffee and notepad as I unveil the four strategies for you. 🍵

𝗧𝗵𝗲 𝗿𝗶𝘀𝗲 𝗮𝗻𝗱 𝗿𝗶𝘀𝗲 𝗼𝗳 𝗼𝗽𝘁𝗶𝗼𝗻𝘀 𝘁𝗿𝗮𝗱𝗶𝗻𝗴 𝗶𝗻 𝗜𝗻𝗱𝗶𝗮?

FY 22-23 saw the total turnover of index options rise up by 87% while the equity segment was down by 20%?

Is it the beginning of a new trend in options?

Here’s a deep dive into the topic ⤵️ What are Options? When were Options introduced in India?

Options (in a simplistic sense) are instruments that can be used to make speculative bets on an underlying in this case the index, with very low upfront costs.

June’23 marks 22 years of Index options in India. 
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The Story of VIX

As Options traders, we all look at VIX or at some point realise its importance. But have you ever wondered where did it come from? Who were the brains behind it?

I did, and here’s the back story. Sit back and read on. ↘️ Till the 1950's fund managers were judged based on absolute performance. If you gave them 100 and they turned it to 112, you would say they did 12% on it. Things changed after Harry Markowitz published a groundbreaking paper titled “ Portfolio Selection”.