Index Long term Strategy

 Low risk high return strategy

 Investing is only in Nifty as index can never become zero, sooner or later
the price will grow
 Unlimited gains when the market rises but due to hedging the losses will
be limited to the hedging(insurance) costs only
 No lock in period but a period of 5-10 years will show proper growth
 Total portfolio value – 1 crore from which 30 lacs will be for purchasing
Nifty shares and the rest 70 will be for purchasing Nifty futures
 Insurance cost- 5% which is the protection against market call
 Minimum Investment – 25 lacs
 Initial Investment – 7.5 lacs ( Monthly SIP can also be done)
 Total financing cost- 8.5% = {5 + (70%*5%)}

Currency Hedging

 The strategy is for importers and exporters to protect them from the risks
involved with the currency fluctuations
 Low risk strategy
 When USD rises, no new risk arises and when USD falls, we are
protected from the losses
 Hedging can be done through banks, futures or options
 In hedging through banks, no extra cash has to be managed but there will
be no new profits when market rises. Also, the cost is higher when
hedging through banks as compared to the cost involved in options and
futures market and its difficult to hedge when import and export is done
simultaneously
 Hedging through futures is a cost effective way. It is easy to enter and
easy to exit. Just like hedging through banks, when prices rise, there will
be no new profits but when price falls, there are few other risks like
facing the Mark-to-Market losses on daily basis, keeping track of the
multiple accounting entries involved in the transaction on day-to-day
basis and the requirement of an initial margin investment
 Unlike hedging through banks and futures, when there is a favourable
movement in market, hedging through options will generate new profits
but when the market falls, the loss will be limited to the premium only.
Other benefits are that there is no initial margin investment required, no
additional Mark-to-Market loss, very few accounting entries for the
 hedging transaction, no need to arrange for new funds or for managing
the losses

Arjuna Strategy
 Limited risk and unlimited returns strategy
 Intraday Trading strategy
 Maximum risk involved – 30%
 Expected YOY returns- 60-100%
 The strategy’s objective is to make money from the heavy
movement in the options price
 For selecting strikes for long option: 100 points ITM , ATM and
OTM strikes are selected which have prices within the range of
50-100 points in Nifty and a range of 50-200 in Banknifty in the
morning
 For selecting strikes for short option: for selling call it is the
maximum OTM CE strike which has gone long +100 points and
for selling put it is the maximum OTM PE strike which has gone
for -100 points
 10% of the fund is distributed among the qualified strikes equally
 The quantity of options to be sold on a given day will be
determined on the market fluctuations. If market rises, the
quantity of call options will be shorted and if market falls then put
options quantity will be shorted
 The exit from the strategy will be done if the loss exceeds 1.5%of
the fund invested on a particular day or the Nifty options prices
rises by 300%

Intraday Short Gamma Strategy

 Intraday strategy in Nifty and BankNifty

 Objective is to make profits from time, volatility and view
 Maximum risk involved-15%
 Expected YOY returns – 24-30%
 The trade is done in 2 strike combinations in Nifty and Banknifty
 The same quantity will be sold in each strike which is being shorted and
it will be adjusted for delta. For example, if the delta is long, more call
will be bought and less put will be sold and vice versa
 The view on volatility will be considered when the volatility starts falling
after its entry in Nifty.
  If the volatility is rising then the market view will be considered in case
of BankNifty and when the volatility falls, inverse view of the market
will be considered

Volatility Spread Strategy

 Targets to make a vega neutral butterfly

 Maximum risk involved- 5%
 Expected YOY returns- 12-15%
 Objective is to make money from volatility spreads between 2 strikes
of Nifty and BankNifty
 The quantity for total short positions is fixed but for long the quantity
may be differ based on the vega of the strike shorted

Eagle Strategy

 Uses a combination of 6 strategies which are Straddle, Bull & Bear Call
& Put
 Objective is to make money from the weekly movements using locked
strategies
 Same quantity is bought in Call and Put
 Maximum risk involved – 20%
 Expected YOY returns- 30-35%