LKP Securities Limited's Investment Advisory introduces Alpha Trade a Structured Product.
The strategy involves selecting low to moderately high beta stocks with ample liquidity in options.
The allocation is distributed in various sectors which increases the efficiency of the strategy and also reduces the risk of substantially.
The strategy is executed after studying the outcome of fundamental events like quarterly results, elections RBI policy etc.
Alpha Trade Features
- The strategy involves selling of OTM options at the beginning of new series.
- The strike selection is carried out based on our proprietary models.
- If further opportunity is observed in the stocks fresh strikes can be Selected.
- The strategy is avoided ahead of quarterly numbers & events like RBI policy, elections, etc.
Alpha Trade Advantages & Risks
- The strategy reduces the cost of holding in scenarios where the underlying is not showing any momentum.
- Low risk strategy with potential of generating consistent returns.
- Diversification which mitigates the risk to a great extent.
- The strategy can result in losses in case of major news flows announced after markets are closed.