Hedging The Portfolio Using Options Strategies

In this modern era, Option Trading emerges as the most flexible and convenient ways for Hedging the Portfolio. Trading in financial derivatives has become popular in India. In this scenario, the principles of different options are applied on historic data of various stock option segments to realize the meaningful knowledge. This paper will comprise of various option strategies for hedging purpose. All these strategies will be compiled using Python as the programming language along with NumPy and Matplotlib libraries. Trails are conducted to show the profitability of our strategies in real world. The motive of this research is to help the Retail Investors of the Share Market, as they are the individuals who are most prone to losses because they don't take a hedge to their portfolio. So by using these strategies he can mitigate his risks and ensure safety of his funds.