Lets take an example I buyed a naked 34600PE bank nifty and from there bank nifty reached till 34300 and started to consolidate and my view is that it will go further down after consolidation then how can I hedge this position so that I can secure my capital any sudden up move?
One way is to sell your 34600PE and move to 34500PE and book your Rs.100 profit. You pay slightly more on the time value of the lower strike, which is the cost of the profit protection.
can’t I hedge my original position by selling 34400PE?
How would your profit from this view of yours if you sell the 34400PE ?
sir I realy don’t know that is why I am asking here. I just thought of creating my naked position into a debit spread. So I could hedge my downside. But I am new so that is why I am here for guidance
This is a great place to start learning - Options Theory for Professional Trading - Varsity by Zerodha
As for your example if you short a put then you don’t make any extra profit if market goes further down. So the better way
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if you wan’t to exploit profit from further downside sell your 34600PE and move to 34500PE and book your Rs.100 profit
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if you wan’t to just capture the current profit you made sell your 34600PE. That would be better than selling an additional 34400PE.
Thank you sir 
well, naked positions with banknifty…its a harakiri & can strip you naked 
…jokes apart…i suggest research & backtest on various hedge models…