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Portfolio Hedging Helper.
Protect What You've Built.
Find the right hedge to protect your portfolio from market downturns without sacrificing all your upside.
Portfolio Details
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Hedge Instrument (Put Option)
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Hedge Recommendation
Optimal position to protect your portfolio
Enter parameters to see hedge recommendations
How Hedging Works?
Hedging is like insurance for your investments. By buying Put Options, you gain the right to sell an asset at a specific price (Strike Price), protecting you if the market falls below that level.
The Formula
Contracts needed = (Portfolio Value × Beta) / (Index Price × Delta × Multiplier)
This calculates a "Delta Neutral" hedge, aiming to offset portfolio losses dollar-for-dollar with option gains.
Key Terms
- Beta: How volitile your portfolio is compared to the index. (High beta = needs more protection).
- Delta: How much the option price moves for every $1 move in the index.
- Multiplier: The size of one contract (e.g., 50 for NIFTY, 100 for Stocks).