Home >>ACMIIL Home >> ACMFSL Home >> ACMRES Home >> Resume Status Home >> Apply Now Home >> Culture Home >> Current Opening Home >> Deenas World Home >> Faq's Home >> Financial Terms Home >> Five W’s of Investment Home >> Health Checkup Home >> Investmentz Online Home >> Management Team Home >> Media Corner Home >> NRI Center Home >> Register Now Home >> Research Home >> FAQ's Home >> Knowledge Support Home >> Why Investmentz Home >> Sitemap Home >> Career Home >> Gallery Home >> Feedback Home >> Disclaimer Home >> Privacy Home >> Services Home >> Tools & Platforms Home >> Investment Products Home >> About Us Home >> Contact Us Home >> Download Home >> Security Home >> My Subscription Home >> Retail Investors Home >> NRI Investors Home >> Institutional Investors Home >> Corporate Clients Home >> Bank Home >> Alternate Investment Fund Home >> Financial Planning Home >> Investment Advisory Home >>Portfolio Tracking


Change Font Size: A+ A-

Call writing to hedge your Portfolio Stocks Overall RATE RATE (0.00)

We are well aware that general elections results are due next month, which is expected to result in wide fluctuation of the Index. Therefore, in this backdrop, we are recommending you to hedge your portfolio stocks through call writing. Call writing is the best strategy to hedge the portfolio stocks as the volatility is very high in options during the election month. Call writing means selling a call option of selective strike. This article will give you the strategies for the ‘Top 10 Stocks’ to hedge them against market volatility.


The main criteria for the strategies mentioned in this article is that you should have the stock quantity same as the F&O lot size. Moreover, if you do not have enough quantity to match the lot size, we recommend you to sell some other stocks, which are low beta or you can send us the portfolio so that we will suggest you to make lot size after selling some stocks.


Call Writing Example:

Suppose I have 1000 shares of Tatasteel (Cmp 415) for short/long term.



Sell Tatasteel 420 CE at Rs 30 i.e 7.4% of the stock price.



If the stock decreases to 370, the total premium comes as profit. If the stock increases to 470, then stock value increases by Rs 55 with loss of only Rs20 in 420 CE yielding net profit of around Rs35 Per lot.


In case someone does not have 1000 shares of Tata Steel and has only 700- 800 shares, then sell some low beta stocks to make the same lot size as in F&O to hedge.

Top 10 Stocks Strategies



Lot Size





Sell Reliance May 960 CE at Rs. 55-60




Sell Icicibank May 1280 CE at Rs. 80-85




Sell Tatasteel May 420 CE at Rs. 30-35




Sell Larsen May 1300 CE at Rs. 95-100




Sell Hindalco May 145 CE at Rs. 9-10




Sell ITC May 360 CE at Rs. 13-14




Sell Infy May 3200 CE at Rs. 100-110




Sell Tcs May 2250 CE at Rs. 80-90




Sell Idfc May 120 CE at Rs. 10-11




Sell Sbin May 2050 CE at Rs. 130-140


The 10 Stocks mentioned have Liquidity in options in the next month. Therefore, we recommend that one can start adopting these strategies. We will be releasing some more strategies as the volume in stock options increases in other stocks.

Written By:

Akhil Rathi

Equity Research Desk


Written by : blog admin

Nifty – Shake off of weak bulls Overall RATE RATE (0.00)

Nifty and Sensex continued to make new highs. There was good momentum and sector shift seen. It is a healthy sign when different sectors take part in the rally. As indicated in the July edition of Market Pulse, the IT, Healthcare and FMCG sectors outperformed the indices. Real Estate and Capital Goods were he worst losers respectively.




The RBI meet on the policy on 5th Aug could be a decider of the further course of the markets. Whatever the decision on the rates, we expect the bullishness to continue. If we can have a pre-election rally, a pre-budget rally then why not a pre-independence day rally on the indices? The sectors in focus during this month would be Oil and Gas, especially the PSU stocks.




Written by : blog admin

Older Posts

Today’s Poll

Today’s Poll
Will Nifty Hold 8500 Level till Diwali?

Most Read

Is Financial Compatibility the Key to a... by blog admin 05-Feb-2016, 00:00 Hours IST
How your financial goals help you in fi... by blog admin 17-May-2016, 00:00 Hours IST
Importance of striking the right balanc... by blog admin 20-Jan-2016, 00:00 Hours IST
SEBI Reg. Nos | BSE CM:INB 010607233 & Derivatives:INF 010607233 | NSE CM:INB 230607239 | Derivatives INF 230607239 & Currency Derivatives INE 230607239 | MCX SX INB 260607230 | Derivatives INF 260607230 and Currency Derivatives INE 260607230 | DP: IN-DP-CDSL-28-99 and Merchant Banking INM000010973.