"Derivative Diversified Basket" is a one-of-a-kind portfolio that invests in up to 10 undervalued, high-quality stocks listed in the derivatives segment. This unique smallcase is designed for:

• Investors seeking long-term value creation through fundamentally strong stocks across sectors and market caps.
• Option traders who want to generate additional income by selling options against positions.
• Hedge enthusiasts aiming to protect their portfolio during market uncertainties by selling futures.

This smallcase provides diversification, flexibility, and risk management strategies tailored for modern investors.

Enhancing Alpha Returns:

1 Sector Rotation:

• Regularly assess and replace sectors that have achieved their fair value with new undervalued opportunities.

2 Leverage Income Enhancement:

• Advanced investors can employ option-selling strategies to generate consistent income, especially during sideways markets. By selling options against portfolio holdings, they can capitalize on time decay (theta) while maintaining exposure to core stock positions.

3 Strategic Active Hedging:

• During periods of high market volatility, sophisticated investors can tactically hedge their portfolios by initiating short positions in futures contracts. This approach helps offset potential losses while preserving long-term investment gains.

4 Frequent Monitoring & Rebalancing:

• Update portfolio needed or quarterly based on sectoral performance and macroeconomic trends.