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RupeeCase Learn/Path 17/Beginner

Strategies and Hedging

Payoffs of spreads, straddles, strangles, condors and calendars, adjustments and expiry day, then portfolio hedges with puts, collars and tail cover.

  • 23modules
  • 215 minof reading
  • 30question path test
  • Freewith a certificate
Start at 17.1See the stops

01The line

23 stops, 23 live.

Every strategy is a payoff with a price tag. Spreads, straddles and condors drawn from dated chains with costs left in, then the hedges a long investor can use, the one job F&O will do at RupeeCase.

0of 23 done on this device

  1. 17.1Reading and building payoff diagramsA payoff diagram is a table of results drawn as one line. How to read its axes, build it from legs, and know what it cannot tell you7 min
  2. 17.2Vertical debit spreads: bull call and bear putBuy one option, sell another a few strikes away. What it costs, the most it can lose or make, and what it gives away8 min
  3. 17.3Covered call, protective put and cash secured putTwo extra legs against a position you hold. What each one pays for, what it costs, and what it gives away8 min
  4. 17.4Why and when to hedge: insurance in plain numbersA put as an insurance policy: premium, deductible, cover, term and claim. What it cost in a calm month, and what it paid in a fall8 min
  5. 17.5Straddles and strangles, long and shortTwo legs on one expiry, a bet on how far the index moves and not which way. What each costs, where it breaks even, and what the seller gives up8 min
  6. 17.6Credit spreads: bull put and bear callSell a nearer option, buy a farther one, and be paid first. What the credit is, what it risks, and what a month of data shows9 min
  7. 17.7Iron condor and iron fly on NiftySell a quiet zone and buy the wings. What it pays, the most it can lose, and what a success rate leaves out10 min
  8. 17.8Butterflies and broken wing butterfliesA tent that pays near one strike. What it costs, where the money is made, and what a broken wing does to the risk9 min
  9. 17.9Option calendar spreadsSell the near expiry, buy the far one, at one strike. What it costs, what it earns, and what the margin rule changes9 min
  10. 17.10Choosing a strategy by view: direction, volatility and timeThree questions turn a view into a short list of payoffs. What each one decides, and what a match does not say9 min
  11. 17.11Adjustments: what they really do to riskAn adjustment is a new trade, not a reset. One June 2026 strangle, three adjustments, and what each locks in, changes and costs9 min
  12. 17.12Expiry day: gamma, theta, settlement and the rulesThe last day of an option is a payoff, not a feeling. Gamma and theta on dated NSE data, three settlement regimes, SEBI's rules since 2024 and the Jane Street interim order as it reads10 min
  13. 17.13Hedging a stock portfolio with Nifty putsBeta times value, divided by one lot. Two hedges, two dated windows, and the way a wrong beta or a rounded lot shows up in the result9 min
  14. 17.14Collars and put spreads as cheaper hedgesCheaper cover is different cover. Two ways to cut the premium of a put, and what each one takes out of the hedge9 min
  15. 17.15Hedging mutual fund portfolios: beta and basisA fund is not the index. Beta sizes the hedge, basis decides what it leaves open, and the two windows show how much9 min
  16. 17.16Ratio spreads and backspreadsA ratio spread is paid up front for a risk with no ceiling. A backspread pays for the opposite. Read the Greeks and the tail before the credit10 min
  17. 17.17Diagonals and double calendarsSell the near expiry, buy the far one, and move the strike or add a second calendar. The trade is on how two expiries are priced against each other11 min
  18. 17.18P&L attribution by GreeksDelta, gamma, vega and theta explain a day well and a fortnight badly. The residual says how well11 min
  19. 17.19Event hedging with event varianceAn event adds a lump of variance to the expiries that hold it. Reading the lump takes a guess, and the guess moves the answer10 min
  20. 17.20Tail hedging and long dated Nifty optionsA tail hedge pays in rare large falls and costs a premium the rest of the time. The strike and the life of the put decide most of it10 min
  21. 17.21Hedging an option selling book: wings, vega, gaps and margin stressWings cap the loss and cost most of the income. Each wing distance is a different position, not a safer version of the same one11 min
  22. 17.22Kelly and sizing for option strategiesKelly sizes a bet when the odds are known. Option lots and a guessed win rate show where the formula stops10 min
  23. 17.23Risk for option books: scenarios, stress, VaR, ES and margin shocksA sold strangle can look flat on delta and still lose thousands on a gap. Six layers of a report catch what each one misses11 min, path test

02Outcomes

What you will be able to do.

  • 01Draw the payoff and breakevens of a spread before entering it
  • 02Compare the maximum loss of a sold and a bought strategy
  • 03Add costs to a strategy and see how much of the edge they take
  • 04Price a protective put or a collar on a long portfolio

03Certificate

Pass the path test.
Keep the proof.

  1. 1Read the modules and try each quick check (optional)A pass gives that module's own certificate
  2. 2Take the 30 question path test21 correct to pass, drawn from 350 questions
  3. 3Get the certificateWith an ID and a QR code
Jump to the path test About the certificates

04Questions

About Path 17.

What does Path 17, Strategies and Hedging, cover?

Payoffs of spreads, straddles, strangles, condors, butterflies and calendars, adjustments and expiry day, then portfolio hedges with puts, collars and tail cover, every one with costs.

Which strategy has the highest success rate?

A win rate means little without the size of the wins and losses. The path draws every strategy as a payoff with its maximum loss and costs, so the two can be compared on one chart.

Will RupeeCase offer F&O?

Only for hedging: as insurance for a long portfolio, never for speculation or leverage. That module is in development and not available yet.

Explore next

Where to go next.

Before this pathPath 14: Options and GreeksBeginner, 17 modules Before this pathPath 16: VolatilityBeginner, 16 modules Pillar guideDerivatives and Quant115 modules F&O on RupeeCaseHedging only, in developmentProtection for a portfolio you own, by a published rule

Education only, not investment advice, a research report or a recommendation to buy, sell or hold any security. RupeeCase (QC Alpha Technologies Pvt Ltd) is not registered with SEBI as an investment adviser or research analyst. Contracts and prices shown are for illustration only, come from NSE end of day files at least 30 days old, and are not recommendatory. Derivatives trading carries a high risk of loss.