Traders & Investors Paradise

The strategy of selling Calls helped to neutralize the loss on the Puts. If the stock closes below Rs 540 by expiry, I will take delivery and selling Rs 540 Calls of November.

Atul Auto is up 7% today over this news of Vijay Kedia's investment.

Atul auto in focus
veteran investor Vijay kedia to invest in Atul auto
To invest 115cr via preferential issue
58.08 lakh warrants at price of 198rs each
Vijay kedia shareholding to increase to 18.2% post conversion to equity

https://twitter.com/_soniashenoy/status/1579307745886769152

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.

The unexpected surge of 1000+ points on the Bank Nifty put my position in a loss. I aggressively sold some puts. There was a bit of panic (because I unnecessarily had several other positions as well). I lost about Rs 1 Lakh. If I would have held on a little longer, the position would have shown a little profit.

Anyway, I squared off and created a new Call Calendar at 38000CE Oct and 38200CE 6th October.

The Nifty 17000 Call Calendar looks like this. Because the IV increased, the position is in a nice profit.

I don't want to square off the 38500 CE because it still has premium worth Rs 183 in it. So, I added a Put Calendar at 38000PE in case the Bank Nifty continues to plunge.  I will shift the 38500CE to 38300 or even 38200 if the softness continues.

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.

The Bank Nifty plunged to 38200. However, my position is in a profit of about Rs 80000. I would like to exit and re-enter.

Great. One of the safest strategies in blue-chip stocks.