I committed a blunder today by selling 11200 nos of the Nifty 17500CE. The Nifty was below 17000 and was looking very sluggish. However, immediately thereafter the Indices surged, putting my short position in a deep loss. To salvage the situation, I bought a 17200 Call Calendar. The combined BEP is 17500. I will add more Calendars if it looks like the Nifty will sustain beyond that.
Fortunately, towards the EOD, the Indices cooled down a bit and my huge loss turned into a small profit.
(https://zerodha.trade/zerodha-uploads/Nifty_300922.jpg)
The Nifty has gone below 17000 and so it is not safe to hold on to the 17200 long position. I squared it off and shifted to a 17000 Call Calendar.
(https://zerodha.trade/zerodha-uploads/Nifty_calendar_031022.png)
The Nifty 17000 Call Calendar looks like this. Because the IV increased, the position is in a nice profit.
(https://zerodha.trade/zerodha-uploads/Nifty_calendar_031022-2.png)
Because the Nifty shot up 387 points and came close to my BEP, I had to square off the 17000 Calendar. Unfortunately, the ViX also fell 8.42% causing a loss in the long leg. I suffered a loss of about 50000+. I know have a 17300CE - 17400CE Calendar with a BEP of 17500.