I have a future buy contract and sold call option ( close to futures rate) as a hedge. Is this a good hedging option? Please recommend any other hedge options
Downside is protected limited to the premium recieved in short call. Buying put could be one way.
FNO is a hedging product. The whole purpose of FNO is for hedging.
you don’t hedge a hedging product.
Buy spot/cash stock or a portfolio. use Single stock FNO to hedge or use nifty FNO for hedging a portfolio.
Do note the beta for hedging.