🧠 Akshat Srivastava Notes – Oct 26

Topic: Options, Hedging & Portfolio Strategy

Key Takeaways

  1. Selling Put Options (8–10% Returns)

    • Making consistent 8–10% returns by selling puts is achievable and not overly complex.

    • Short-term profits are fine even with income tax implications — they’re part of the game.

  2. Buying Put Options (Insurance Cost)

    • Think of buying a put as portfolio insurance.

    • If the insurance cost (premium) is under 5%, it’s reasonable and worth taking.

  3. Hedging Logic

    • The cost of the put correlates with your potential profit — it’s a hedge against downside risk.

  4. Platform Comparison: IBIT vs. Robinhood Crypto

    • IBIT (Bitcoin ETF) is more efficient than Robinhood Crypto, which adds unnecessary miscellaneous charges.

    • IBIT also allows options trading, making it better for hedging and structured strategies.

  5. Portfolio Allocation (Akshat’s Model)

    • 40% Cash: for flexibility and opportunity.

    • 60% in Options (Calls & Puts): actively managed to generate income and hedge risk.


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