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Advanced Options Strategies for Portfolio Protection

A defined-risk framework for protecting an existing portfolio with options, built for experienced retail investors, active traders, and HNIs who already know how calls and puts work. Moves past speculation into protective puts, collars, spreads, index-level and tail-risk hedging, and the real cost, margin, and tax mechanics of running a hedge in the Indian market. Uses real Indian drawdowns, including the March 2020 crash and the 2022 correction, alongside Nifty, Bank Nifty, and India VIX data, SPAN margin mechanics, and ITR treatment of options P&L throughout.

Protective PutsCollars and Covered CallsPortfolio Hedging

MODULES

10

DURATION

~6.5 hrs

TRACK

Options & Derivatives

What You'll Master

Hedge a portfolio using protective puts, collars and covered calls

Apply spreads and index-level hedges across diversified portfolios

Build a systematic framework covering costs, taxes and margin

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: Why Protect a Portfolio: The Case for Hedging with Options

4 Lessons

Why Diversification Alone Isn't Enough: Lessons from 2020 and 20229 min read

The Cost of Not Hedging: Sequencing Risk and Drawdown Math8 min read

Insurance vs Income: The Two Philosophies of Options-Based Protection8 min read

India VIX as Your Portfolio's Smoke Alarm9 min read

Chapter 2: The Protective Put: Your First Line of Defense

4 Lessons

How a Protective Put Works: Buying Insurance on Your Holdings9 min read

Pricing the Put: Strike Selection and the Cost of Protection10 min read

Protective Puts on Nifty vs Individual Stocks: When Each Makes Sense9 min read

Case Study: Protecting a Portfolio Through the March 2020 Crash11 min read

Chapter 3: Collars and Covered Calls: Financing Your Protection

4 Lessons

The Covered Call: Trading Upside for Income9 min read

The Collar Strategy: Zero-Cost (or Low-Cost) Protection10 min read

Choosing Strikes for a Collar: Balancing Cost and Cap9 min read

When Collars Backfire: The Opportunity Cost in a Runaway Bull Market9 min read

Chapter 4: Spreads for Defined-Risk Hedging

4 Lessons

Put Spreads: Cheaper Protection with a Floor9 min read

Bear Call Spreads as a Hedge Against a Specific Sector9 min read

Calendar and Diagonal Spreads for Time-Based Protection10 min read

Comparing Hedge Structures: Cost, Protection, and Breakeven Side by Side11 min read

Chapter 5: Index-Level Hedging for Diversified Portfolios

4 Lessons

Hedging with Nifty and Bank Nifty Options: Matching Your Portfolio's Beta10 min read

Calculating How Many Lots to Hedge: The Beta-Weighted Delta Method11 min read

Hedging a Multi-Cap Portfolio: Blending Nifty, Bank Nifty, and Midcap Options10 min read

Rebalancing Your Hedge as the Market Moves9 min read

Chapter 6: Tail-Risk and Volatility-Based Hedging

4 Lessons

Tail Risk Explained: Why Ordinary Hedges Fail in a Black Swan9 min read

Buying Far OTM Puts as Cheap Tail Insurance9 min read

Trading India VIX Futures and Options to Hedge Volatility Spikes10 min read

Case Study: How a Tail Hedge Would Have Performed in COVID March 202011 min read

Chapter 7: Hedging Concentrated and Single-Stock Positions

4 Lessons

The Problem with Concentrated Wealth: ESOPs, Promoter Holdings, and Legacy Positions9 min read

Protective Puts and Collars on Single Stocks: Illiquidity and Wide Spreads10 min read

Synthetic Positions: Recreating Exposure While Reducing Risk10 min read

Case Study: Hedging a Concentrated IT ESOP Portfolio Around Results Season11 min read

Chapter 8: Managing and Rolling Hedges Over Time

4 Lessons

When to Roll a Hedge: Time Decay and Strike Adjustment9 min read

Rolling Up, Rolling Down, and Rolling Out: Choosing the Right Move10 min read

The Behavioral Trap: Why Investors Abandon Hedges at the Worst Time9 min read

Building a Hedging Calendar Around Budget, Results, and Fed Events9 min read

Chapter 9: Costs, Taxation, and Margin Mechanics of Hedging

4 Lessons

The True Cost of Hedging: Theta Decay, Bid-Ask Spread, and Roll Cost9 min read

SPAN Margin and Exposure Margin: What Hedging Actually Costs in Capital10 min read

Taxation of Options P&L for Hedgers: Speculative vs Non-Speculative Business Income11 min read

Reporting Options Hedging Activity in Your ITR10 min read

Chapter 10: Building a Systematic Portfolio Protection Framework

4 Lessons

Setting Your Hedging Policy: Triggers, Budget, and Review Cadence9 min read

A Decision Framework: Which Hedge for Which Market Condition10 min read

Backtesting a Simple Hedging Rule on Nifty Historical Data11 min read

Putting It All Together: A Full Worked Example Portfolio with a 12-Month Hedge Plan13 min read