HDFC Securities Senior Relationship Manager Interview Questions, Process, and Tips

The best way to protect holdings from falling prices is through diversification and hedging strategies.

• Diversify the portfolio by investing in different asset classes, sectors, and regions.

• Use hedging strategies such as buying put options or short selling to offset potential losses.

• Regularly monitor the market and stay updated on relevant news and events.

• Implement stop-loss orders to automatically sell holdings if pric...read more

Selling near same quantity out of the money call of a share involves selling call options with a strike price higher than the current market price.

• Out of the money call options have a strike price higher than the current market price.

• Selling these options allows the seller to collect premium upfront.

• The seller believes that the share price will not rise above the strike price before the option expires.

• This strategy can...read more

Options strategy refers to the use of various options contracts to achieve specific investment goals.

• Options strategies involve buying and selling options contracts to take advantage of market conditions.

• Common options strategies include covered calls, protective puts, and straddles.

• These strategies can be used to generate income, hedge against risk, or speculate on market movements.

• For example, a covered call strategy...read more