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Practice Drills: Structuring an Options Hedge for a Live Portfolio

A practice-first companion to Advanced Options Strategies for Portfolio Protection. Instead of more theory, you carry a single model portfolio of NSE-listed stocks through every step of building a working hedge: measure its beta against the Nifty 50, turn that into a hedge ratio and a lot count, pick put strikes and expiries, price the hedge as a percentage of portfolio value, and stress-test it against 10%, 20% and 30% falls. Then you finance it with put spreads and collars, deal with single-stock and bank-heavy concentration, check SPAN and exposure margin, account for STT and charges, and manage the hedge live through rolls, rallies and a crash. The course ends with you writing a six-month hedge plan for your own holdings.

Portfolio HedgingBeta HedgingProtective PutsCollarsPut SpreadsHedge Management

MODULES

6

DURATION

4 Hours

TRACK

Options & Derivatives

What You'll Master

Measure a portfolio's beta to the Nifty 50 and convert it into an exact hedge ratio and lot count

Choose put strikes and expiries against a stated drawdown you are willing to accept

Express hedge cost as an annualised percentage of portfolio value and compare structures on that basis

Finance protection with put spreads and zero-cost collars, and know what each gives up

Hedge concentrated single-stock and sector exposure, and measure the basis risk that remains

Check margin, execution slippage and statutory charges before placing the hedge

Roll, adjust and monetise a live hedge, and write a hedge plan for your own portfolio

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: Setting Up the Drill Portfolio

3 Lessons

How This Hedge Drill Course Works8 min read

Drill: Building the Model Portfolio and Measuring Its Beta13 min read

Drill: Defining Exactly What You Are Hedging Against10 min read

Chapter 2: The Core Index Hedge

4 Lessons

Drill: Converting Beta-Adjusted Exposure Into a Nifty Lot Count12 min read

Drill: Choosing the Put Strike and Expiry12 min read

Drill: Pricing the Hedge as a Percentage of Portfolio Value11 min read

Drill: Stress-Testing the Hedge Against 10, 20 and 30 Percent Falls13 min read

Chapter 3: Financing the Hedge

3 Lessons

Drill: Converting a Protective Put Into a Put Spread11 min read

Drill: Structuring a Zero-Cost Collar on the Nifty12 min read

Drill: Comparing Put, Put Spread and Collar Side by Side11 min read

Chapter 4: Concentration and Basis Risk

3 Lessons

Drill: Hedging a Concentrated Single-Stock Position12 min read

Drill: Hedging a Bank-Heavy Portfolio With Bank Nifty Options11 min read

Drill: Measuring the Basis Risk Your Index Hedge Leaves Behind11 min read

Chapter 5: Margin, Charges and Execution

3 Lessons

Drill: Checking SPAN and Exposure Margin Before You Place the Hedge11 min read

Drill: Placing the Hedge Without Bleeding on Bid-Ask Spreads10 min read

Drill: Calculating the All-In Cost Including STT and Charges10 min read

Chapter 6: Managing the Hedge Live

4 Lessons

Drill: Rolling the Hedge Into the Next Expiry11 min read

Drill: Adjusting the Hedge After a Sharp Rally or Fall12 min read

Drill: Monetising the Hedge in a Crash11 min read

Capstone Drill: Write a Six-Month Hedge Plan for Your Own Portfolio15 min read