I have a strategy in mind I will invest 5k every friday in niftybees until the value of the niftybees becomes 10 lakh (3-4years) after this using basic option chain analysis to execute swing option trades(30days max). Basically i am hedging the niftybees so if i see that nifty will become negative i buy a put . But if the trade does not goes as planned the loss in the put will be covered in the niftybees which i will withdraw (i will keep the value of niftybees till 10Lakh if there is profit of even 2k i will withdraw). Is this what i am saying is this a 0 loss strategy. I think i will only make a loss when the market is sideways. Please correct me if i am wrong.
@Nishant_Jakane can you try doing the math with some actual numbers?
What are the returns one can expect from such a scheme?
Remember to account for brokerage, STT, and other charges that scale relative to the contract value, as someone recently discovered to their surprise.
After all that. does this scheme even beat the returns from a near-zero/zero-risk passive investment? (currently 7%)
PS: From what i understand (mostly from reading posts in this forum),
all such trivial schemes are no longer viable.
Also, any viable niche scheme that still exists,
a trader following the scheme is unlikely to publicly acknowledge its viability,
as they wouldn’t want to attract competition in a zero-sum game.
Which is most of the time.
Try Nifty Future with options as hedge or extra returns.
Assume : Nifty will only rise.