Hello Friends. My name is Michael Gonsalves. I have enjoyed reasonable success with Options strategies. I made Rs. 2.5 Cr in FY 2019-20 and Rs. 1.65 Cr till date in FY 2020-21 (see proof). I am eager to learn more and also to impart my learnings to others. If you have any queries, please ask. I will answer soon.
I also had a calendar in the Bank Nifty which saved the day to some extent. I had added a position when the Bank Nifty was at 39700. When this started bleeding, I put a SL which got hit. However, I let the long positions remain. The result is that I could book a handsome profit of Rs. 3.80 Lakh.
I got badly trapped by the extreme volatility. In the morning, the Bank Nifty had plunged and short Puts had hid their SLs. The short Calls were in hefty profits of Rs. 30000+. However, the savage surge in the Bank Nifty in the second half took me by surprise. Unfortunately, I had not changed the SLs so as to lock in some of the profits. Also, I was very preoccupied with managing the Calendars, which were also in trouble. The result is that I had to book a loss of Rs. 58000.
When the Nifty plunged to below 18000, I had no option but to roll down the short calls so as to prevent the lower BEP being breached. However, the savage surge thereafter, which took the Nifty beyond 18200, put my short positions in serious jeopardy.
Thankfully, despite all the fiascos, I ended up with a gain of 1 lakh+, which about 1%+ of the capital.
As the Nifty plunged and the ViX surged 5%, I booked profits in the short calls and rolled them down. The Calendar is presently at a hefty MTM profit of Rs. 1.90 lakh. If the Nifty remains stable tomorrow till expiry, more hefty gains can be harvested from the Calendar.
Raghunath Reddy, an expert on options and the founder of Opstra, has provided an excellent guide on the Diagonal & Vertical Calendar Spread Options Strategy. In particular, he has explained how we can make adjustments to derive the best profit potential from the strategy.