Punters' Paradise

Futures & Options Trading => Our Current Trades => Topic started by: Michael Gonsalves on Sep 04, 2021, 01:09 AM

Title: Bank Nifty Iron Fly 9th Sept
Post by: Michael Gonsalves on Sep 04, 2021, 01:09 AM
I have created an Iron Fly options strategy in the Bank Nifty for the week ended 9th Sept. The straddle is at 36700 while the wings are quite narrow at 36200 and 37200.

The breakevens are at 36335 and 37065. This will require adjustment if there is a volatile move in the Bank Nifty.

(https://i.ibb.co/4pJgZkY/Bank-Nifty-Iron-Fly-9th-Sept.png)
Title: Re: Bank Nifty Iron Fly 9th Sept
Post by: Michael Gonsalves on Sep 08, 2021, 04:30 PM
As the Bank Nifty is stagnating at 36700, the Iron Fly is showing a handsome profit of Rs. 80,000 which is 4% of the margin employed.

To lock in the profits, I rolled up and down the wings. This has made the trade virtually risk-free.

(https://i.ibb.co/nrj6wVc/Bank-Nifty-Iron-Fly.png)
Title: Re: Bank Nifty Iron Fly 9th Sept
Post by: Michael Gonsalves on Sep 10, 2021, 04:26 PM
The Iron Fly strategy has finally yielded a gain of Rs. 200,000, which translates to a hefty 9.76% of the capital. It was quite an easy expiry without dramatic movement in the Bank Nifty.

(https://i.ibb.co/jwjmQgJ/Bank-Nifty-Iron-Fly-profits.png)