Ideal Investment Protection in Optimistic Perceptions: Evidence From the Indian Equity Options Market

The study is an experiential assessment on the ability of Indian equity options market to resist adverse impacts that arise from unexpected changes in underlying market, focusing two distinct investor perceptions within optimistic dimension viz. recovery phase and growth phase, which were evident scenario post period financial upheavals due global economic crisis during latter half 2000s. risk mitigation capability examined terms long run integration short re-equilibrating relationship shown by near month calls puts with varied stages exercisability their segment National Stock Exchange India. Further, ideal hedge sizes gains resulting affecting them investment profile are identified under minimum variance framework, using Diagonal BEKK GARCH. results indicative all different segments express have expected resistance both bullish consideration, prove optimal use portfolio provides assured reduction un-anticipatable variances.