---
title: "Hedge a Stock Portfolio with Nifty Puts: Lots, Cost, Beta"
description: "How many Nifty lots cover a stock portfolio, futures against puts, what a beta error does and what a put every month costs, on dated NSE data."
source_url: "https://www.rupeecase.com/learn/path-17/module-17-13-hedging-with-nifty-puts"
---

[Path 17 13 of 23](/learn/path-17/)Hedging a stock portfolio with Nifty puts[Next 17.14](/learn/path-17/module-17-14-collars-and-put-spreads)

A holder of Rs 50 lakh of large cap stocks looks at Nifty on Wednesday 10 Jun 2026 and asks a plain question: how many lots would cover this? The portfolio moves with a [beta](/learn/glossary#beta) of 0.95 against Nifty, so it carries Rs 47.5 lakh of Nifty exposure. One June lot of 65 units was worth Rs 15.11 lakh at the future of 23,240.10. That is 3.14 lots, so the answer is 3. This lesson answers three questions people ask about Nifty hedges: how many lots, futures or puts, and whether a put every month is worth it. The numbers are dated NSE figures and an assumed portfolio. It is a way to read a hedge, not a hedge for any real holding.

3By the end you can

1. Size a Nifty hedge for a portfolio from its value, beta and the value of one lot.
2. Compare sold futures with bought puts in a calm month and in a fall, on dated NSE figures.
3. Say what rounding, a wrong beta and a yearly premium bill do to a hedge.

Watch in the terminal: why do the hero, key figure and XIRR differ? A short tutorial on sample data.

## The idea, plainly

### How many lots: the arithmetic

A hedge only makes sense on something already owned. The sizing has three steps. Multiply the portfolio value by its beta to get the exposure to Nifty. Divide by the value of one lot, the future times the lot size. Round to whole lots. Beta is the slope of the portfolio's returns on Nifty's, an estimate from past data, and the portfolio's own stock specific moves are not in it.

Value times beta, divided by one lot, gives the lots

The example is an assumed portfolio of Rs 50 lakh with a beta of 0.95, and the June future of 10 Jun 2026. One lot is 65 units. Source: RupeeCase worked example on NSE end of day data. As of 10 Jun 2026.
Read one more paragraph, 52 words
Rounding matters at this size. Three lots cover Rs 45.32 lakh, so Rs 2.18 lakh of exposure stays open. A portfolio under about half a lot of exposure, near Rs 7.6 lakh, cannot be hedged with Nifty contracts at all: the smallest hedge would be larger than the thing hedged.

### Two ways to hedge

**Sell Nifty futures.** There is no premium. A fall in the portfolio is offset by a gain on the future, and a rise is offset by a loss, so the line goes flat. Futures settle in cash every day, so the account needs cash for a rising market, and margin is blocked while the position is open (see [margins without jargon](/learn/path-12/module-12-5-fo-margins-explained)). A sold future also earns the basis, because it trades above the index and converges to it by expiry.

Sold futures cancel most of the movement, and the gains go too

Assumed Rs 50 lakh portfolio, drawn as 3.14 lots of the Nifty future (beta weighted), with 3 lots sold. The tilt is the 0.14 lot left open; the same portfolio unhedged would swing about 22 times as far. Profit or loss at expiry against the level of Nifty, before costs. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026.
A put sets a floor under the portfolio and keeps the gains less the premium

Assumed Rs 50 lakh portfolio, drawn as the 3 lots of the future that the puts cover, plus 3 lots of the 22,100 put bought at its 10 Jun 2026 settlement price. Profit or loss at expiry, before costs. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026.
Read 2 more paragraphs, 179 words
**Buy Nifty puts.** A premium is paid upfront. Below the strike the put pays, so the loss stops near the strike, and above it the portfolio keeps its gains less the premium. Take the 22,100 put, 4.9% below the future: it cost 47.05 a unit on 10 Jun 2026, so Rs 9,175 for 3 lots, which is 0.18% of the portfolio for 20 days. The part of a fall between the future and the strike stays with the holder, as the deductible in an insurance policy does.

This is also what beta hedging means: size by beta, then pick the instrument. The sizing for puts is the same as for futures. Either hedge expires. The monthly contract ends on the last Tuesday of the month, so a hedge held for longer needs a new contract each time, at that day's price, and a sold future also has to be rolled: see [rollover](/learn/path-13/module-13-4-futures-rollover) and, for the futures side in depth, [hedging with futures](/learn/path-13/module-13-7-hedging-with-futures). A weekly put costs less per contract and has to be bought more often.

### What each one did in two months

Take the same assumed portfolio through two dated windows. In the calm one, Nifty rose 2.8% from 10 Jun to the 30 Jun expiry. In the fall, Nifty went from 25,088.40 on 2 Feb to 22,331.40 on 30 Mar, down 11.0%. The portfolio is assumed to move with its beta times the index return, and both hedges are held to expiry.

The February fall went through the put's strike

Daily close of the Nifty 50 for the fall window. The line is the strike of the put bought on 2 Feb 2026. Source: NSE end of day data, computed by RupeeCase. As of 30 Mar 2026.

| Assumed portfolio | 10 to 30 Jun 2026 | 2 Feb to 30 Mar 2026 |
| --- | --- | --- |
| Nifty move | 2.8% | −11.0% |
| No hedge | Rs 1,33,160 | −Rs 5,21,984 |
| Sold futures, net | Rs 11,158 | Rs 56,386 |
| Puts, net of premium | Rs 1,23,985 | −Rs 2,12,792 |
| Put premium paid | Rs 9,175 | Rs 25,935 |

Read one more paragraph, 80 words
In June the futures hedge gave back nearly all of the rise, and the puts gave back only the premium. In the fall the portfolio lost Rs 5,21,984 unhedged. The futures hedge ended Rs 56,386 ahead, partly because three lots slightly over cover 2.89 lots of exposure and partly because the sold future earned Rs 40,755 of basis. The puts cut the loss to Rs 2,12,792 and kept the upside. Two windows show the shape, not how often it happens.

### When beta is wrong

A hedge sized on a beta of 0.95 protects a portfolio whose true beta is another number only in part. Take a 5% fall in Nifty from the 10 Jun close and the three sold futures, which gain Rs 2,31,250 in that fall.

| True beta | Portfolio loss | Net with futures |
| --- | --- | --- |
| 0.75 | Rs 1,87,500 | Rs 43,750 |
| 0.95 | Rs 2,37,500 | −Rs 6,250 |
| 1.15 | Rs 2,87,500 | −Rs 56,250 |

A beta of 1.15 against an assumed 0.95 leaves Rs 56,250 uncovered in a 5% fall. The hedge works through the number it was given, so a wrong beta carries into the result.

### Is a put every month worth it for a long term holder?

It is a standing bill. The 22,100 put cost 0.18% of the portfolio for 20 days on 10 Jun 2026. Repeated through a year at that price the bill comes to 3.3%. The 24,050 put bought on 2 Feb 2026, for 56 days, cost 0.52% and comes to 3.4% a year. Cover is dearer after a fall, when India VIX is high. India VIX closed at 15.63 on 10 Jun and 13.87 on 2 Feb 2026, against 27.89 on 30 Mar after the fall, so these two calmer prices understate what a bad month costs: see [why and when to hedge](/learn/path-17/module-17-4-why-hedge). Against that bill stands a fall like the 11.0% one above. Whether the bill is worth it depends on how large a loss the holder can carry, how long the holder can wait and what cover costs on the day. Holding fewer stocks or more cash also limits a loss with no premium to pay, and gives up the gains too.

The nearer the strike, the dearer the cover for the same lots

Cost of 3 lots at the 10 Jun 2026 settlement prices as a share of the assumed Rs 50 lakh portfolio, 20 days to expiry. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026.
Read 2 more paragraphs, 118 words
Strike choice moves the bill. Three lots of the 22,800 put, 1.9% below the future, cost 0.62% of the portfolio on 10 Jun 2026. The 22,500 put, 3.2% below, cost 0.37%. A nearer strike buys more cover and leaves a smaller deductible.

Hedging here means insurance on what is held. Selling options to pay for the cover, or selling an option with nothing underneath it, is a different position, and this lesson does not cover it. RupeeCase's own [hedging page](/hedging) describes F&O used only to protect a portfolio. For a put paid for by selling a call, see [collars and put spreads](/learn/path-17/module-17-14-collars-and-put-spreads), and for a mutual fund portfolio [hedging mutual fund portfolios](/learn/path-17/module-17-15-hedging-mutual-fund-portfolios).

## Worked example: three lots, both months

The assumed portfolio is worth Rs 50 lakh with a beta of 0.95. Both hedges use 3 lots of 65 units and are held to expiry, which settled on the index close.

| Step | 10 to 30 Jun 2026 | 2 Feb to 30 Mar 2026 |
| --- | --- | --- |
| Future at the start | 23,240.10 | 25,297.40 |
| Exact lots by beta | 3.14 | 2.89 |
| Put strike and premium | 22,100 at 47.05 | 24,050 at 133.00 |
| Nifty close at expiry | 23,865.75 | 22,331.40 |
| Put value at expiry, 3 lots | Expired worthless | Rs 3,35,127 |

Read one more paragraph, 87 words
The February put finished in the money, so it also carries STT on its intrinsic value: 0.125% for the 30 Mar 2026 expiry, which is Rs 419 here, and 0.15% from 1 Apr 2026. Brokerage and the other charges come on top, see [the cost of an F&O trade](/learn/path-12/module-12-6-cost-of-an-fo-trade). The hedge calculator below opens on the 10 Jun example with the same Rs 50 lakh and beta, so you can change the value, the beta and the strike and watch the lots and the costs move.

## The common mistake

The belief: If I hedge with Nifty, I am fully protected. Test it on the tables. The three lots left Rs 2.18 lakh of exposure open. A wrong beta of 1.15 left Rs 56,250 uncovered in a 5% fall. The put paid only below its strike and cost Rs 25,935 for the fall window. Nifty derivatives hedge the index part of the risk, and the stock specific part stays, along with the rounding, the basis and the premium. A hedge cuts only the risk it was sized for. It does not remove loss.

2 terms this section turns on

From the module glossary; every term is in the Learn glossary too. Source: Module 17.13, Hedging a stock portfolio with Nifty puts.

## Key takeaways

* Lots equal beta times value, divided by the future times the lot size.
* Whole lots leave part of the exposure open, and small portfolios cannot be hedged.
* Sold futures flatten the line; puts keep the gains for a premium.
* A wrong beta of 1.15 left Rs 56,250 uncovered in a 5% fall.
* A put every month adds up to about 3.3% a year at calm prices.
* A Nifty hedge cuts index risk only; stock specific risk stays.

Watch in the terminal: what does "Same money in NIFTY 50" mean? A short tutorial on sample data.
**Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html)

What does Hedging a stock portfolio with Nifty puts cover?Beta 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 result. It works through The idea, plainly, Worked example: three lots, both months, The common mistake, Key takeaways. It is module 17.13 of Path 17, Strategies and Hedging, about 9 minutes of reading, free.

TTry it

## Hedge calculator, on the same example.
Futures and put lots for a sample portfolio, and what the cover costs. Dated NSE end of day data, nothing live, no orders.

**Hedge calculator**, Nifty, 10 Jun 2026, 30 Jun 2026 expiry.

[Open the hedge calculator](/learn/tools/hedge-calculator?chain=NIFTY_2026-06-10_2026-06-30)

  AF&O on RupeeCase

## Hedging only, in development
F&O at RupeeCase will do one job: protect a portfolio you already own, by a rule published before it runs. No speculation, no naked option selling, no leveraged bets. It is not available yet.

  [How hedging will work](/hedging)[Sign up for RupeeCase](https://invest.rupeecase.com/signup)

  [No hedgeFalls with the marketWith a putA floor, for a premiumIllustration with made up numbers, not a product and not a recommendation.](/hedging)

QQuick check

## 10 questions, 7 to pass.
Each attempt draws 10 of the 17 questions in this module's bank, and a retake draws a fresh set. A pass gives this module's Certificate of Completion. Your result stays on this device and counts towards the Path 17 certificate.

7 of 10 correct passes module 17.13

Every answer is explained when you check; a retake is always free. Source: RupeeCase Learn quiz rules (70% to pass).

  Passed

###

  Certificate ID

Download PNGPrint or save as PDF[Check the ID](/learn/certificates/verify)
Self paced and unproctored. A record of completing free education by RupeeCase; not a NISM certificate and not endorsed by NISM, NSE, BSE or SEBI. It qualifies no one to deal, advise or publish research.

CCheck yourself

## Path 17 so far.
Your quick check results on this device, stop by stop.

Stop 13 of 23 on Path 17

Strategies and Hedging: every live stop, this module ringed. Source: RupeeCase Learn, Path 17.

1. [17.1Reading and building payoff diagramsNot yet](/learn/path-17/module-17-1-payoff-diagrams)
2. [17.2Vertical debit spreads: bull call and bear putNot yet](/learn/path-17/module-17-2-bull-call-and-bear-put-spreads)
3. [17.3Covered call, protective put and cash secured putNot yet](/learn/path-17/module-17-3-covered-call-and-protective-put)
4. [17.4Why and when to hedge: insurance in plain numbersNot yet](/learn/path-17/module-17-4-why-hedge)
5. [17.5Straddles and strangles, long and shortNot yet](/learn/path-17/module-17-5-straddles-and-strangles)
6. [17.6Credit spreads: bull put and bear callNot yet](/learn/path-17/module-17-6-credit-spreads)
7. [17.7Iron condor and iron fly on NiftyNot yet](/learn/path-17/module-17-7-iron-condor-and-iron-fly)
8. [17.8Butterflies and broken wing butterfliesNot yet](/learn/path-17/module-17-8-butterflies)
9. [17.9Option calendar spreadsNot yet](/learn/path-17/module-17-9-option-calendar-spreads)
10. [17.10Choosing a strategy by view: direction, volatility and timeNot yet](/learn/path-17/module-17-10-strategy-by-view)
11. [17.11Adjustments: what they really do to riskNot yet](/learn/path-17/module-17-11-option-adjustments)
12. [17.12Expiry day: gamma, theta, settlement and the rulesNot yet](/learn/path-17/module-17-12-expiry-day)
13. [17.13Hedging a stock portfolio with Nifty putsNot yet](/learn/path-17/module-17-13-hedging-with-nifty-puts#quiz)
14. [17.14Collars and put spreads as cheaper hedgesNot yet](/learn/path-17/module-17-14-collars-and-put-spreads)
15. [17.15Hedging mutual fund portfolios: beta and basisNot yet](/learn/path-17/module-17-15-hedging-mutual-fund-portfolios)
16. [17.16Ratio spreads and backspreadsNot yet](/learn/path-17/module-17-16-ratio-spreads-and-backspreads)
17. [17.17Diagonals and double calendarsNot yet](/learn/path-17/module-17-17-diagonals-and-double-calendars)
18. [17.18P&L attribution by GreeksNot yet](/learn/path-17/module-17-18-pnl-attribution-by-greeks)
19. [17.19Event hedging with event varianceNot yet](/learn/path-17/module-17-19-event-hedging)
20. [17.20Tail hedging and long dated Nifty optionsNot yet](/learn/path-17/module-17-20-tail-hedging)
21. [17.21Hedging an option selling book: wings, vega, gaps and margin stressNot yet](/learn/path-17/module-17-21-hedging-an-option-selling-book)
22. [17.22Kelly and sizing for option strategiesNot yet](/learn/path-17/module-17-22-kelly-sizing)
23. [17.23Risk for option books: scenarios, stress, VaR, ES and margin shocksNot yet](/learn/path-17/module-17-23-option-book-risk)
24. [TPath test, 30 questionsNot yet](/learn/path-17/module-17-23-option-book-risk#pathTestSection)

Path 17 in reading time: 215 minutes over 23 modules

Minutes of reading per module, this one in amber. Source: RupeeCase Learn, Path 17.

    Explore next

## Put the module to work.

* [ToolOption payoff builderLegs on a dated Nifty chain, breakevens and charges](/learn/tools/payoff-builder)
* [Free module 17.4Why and when to hedge: insurance in plain numbers8 min read](/learn/path-17/module-17-4-why-hedge)
* [Free module 17.3Covered call, protective put and cash secured put8 min read](/learn/path-17/module-17-3-covered-call-and-protective-put)
* [Free module 13.7Hedging with futures: beta, hedge ratio and lots9 min read](/learn/path-13/module-13-7-hedging-with-futures)
* [Free module 17.14Collars and put spreads as cheaper hedges9 min read](/learn/path-17/module-17-14-collars-and-put-spreads)
* [Free module 17.15Hedging mutual fund portfolios: beta and basis9 min read](/learn/path-17/module-17-15-hedging-mutual-fund-portfolios)

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SSources

## Go to the source.
6 sources, NSE the most cited

The publisher of each source listed below. Source: Module 17.13 source list.
1. [SEBI Investor, Understanding derivatives (hedging with derivatives)](https://investor.sebi.gov.in/understanding_derivatives.html) SEBI
2. [NSE, equity derivatives contract specifications (lot size, strikes, cash settlement)](https://www.nseindia.com/static/products-services/equity-derivatives-contract-specifications) NSE
3. [NSE, securities transaction tax on equity derivatives](https://www.nseindia.com/static/products-services/equity-derivatives-securities-transaction-tax) NSE
4. [NSE, India VIX index description](https://www.nseindia.com/static/products-services/indices-indiavix-index) NSE
5. [NISM, Series VIII Equity Derivatives, test objectives (hedging and beta)](https://www.nism.ac.in/revamp-nism/test-objectives-revised-nism-series-viii-equity-derivatives-certification-examination/) NISM
6. [Israelov, R. and Nielsen, L. N., Still Not Cheap: Portfolio Protection in Calm Markets, Journal of Portfolio Management, 2015](https://doi.org/10.3905/jpm.2015.41.4.108) Paper

GTerms

## 4 terms from this module.
[Beta](/learn/glossary#beta)The slope of a portfolio's returns against the index's returns. A beta below one means the portfolio has moved less than the index on average.
Beta hedgingSizing a hedge by the portfolio's beta: lots equal beta times value divided by the value of one lot.
BasisThe future less the index. A sold future earns it as the future converges to the index by expiry.
DeductibleIn a put hedge, the loss the holder carries before the put pays: from the future down to the strike.
[All 230 terms in the glossary](/learn/glossary)

[Question people askHow do I hedge a stock portfolio with Nifty puts, and how many lots?A short answer with a dated chart](/learn/questions/hedge-portfolio-with-nifty-puts)[Question people askHedge with futures or options: what is beta hedging?A short answer with a dated chart](/learn/questions/futures-or-options-to-hedge)[Related module17.4 Why and when to hedge: insurance in plain numbers8 min, Beginner](/learn/path-17/module-17-4-why-hedge)[Related module17.3 Covered call, protective put and cash secured put8 min, Beginner](/learn/path-17/module-17-3-covered-call-and-protective-put)[Pillar guideDerivatives and Quant115 modules across paths 12 to 19](/learn/derivatives)

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.