For Investors - "Covered Call strategy" from downside risk
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Investors tend to average their positions by buying every dip with their excess money. Instead, try to learn "covered call strategy"(enough material available on zerodha varsity/any video from youtbe)
Example- You buy HDFC shares at 1600 for long term. But you can never predict any downside risk which comes in the future.
Hence you need to sell far OTM Call option strikes in the long term. So when your stock goes down, you can still not lose much because you are gaining on Call side leg(theta decay aka time decay).
Bonus tip- If you apply this strategy, even when your stock doesn't move/move sideways you can enjoy theta decay and earn a little more. So you can make money twice(in market crash/sideways market).
**Since it is expensive to sell Call legs, you can hedge them by buying higher much far OTM strikes with less premium.
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Warren buffet is a long term investor too. He hedges his portfolio with leap options.
Even big institutions like JP Morgan have derivatives(most of them for hedging) as 90% of their portfolio.
You need to roll over your covered call positions, everytime they get expired. That's how big investors do who hold for very long term.
help with real life trade example
and also on capital required
plus, what to do with shares like tanla, etc which do not have presence in future and options
do you know any forums where they discuss more about stock market please PM me
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this is not suitable for long term investor