Traders & Investors Paradise

The Bank Nifty dipped further to 40500 and came close to the BEP. Instead of moving the Call shorts closer, I added a Put Calendar. This extended the lower BEP to 40400. On Monday or Tuesday, I will roll down the Call shorts if there is no bounce.

The Bank Nifty has softened a bit. My option is to either roll down the short calls or to add more quantities. As I am flush with funds, I chose to add more rather than rolling down. If the Bank Nifty comes closer to the BEP, I will either roll down the short calls (depending on the premium remaining) or add a Put Calendar to extend the lower BEP.

I had bought Futures to salvage a naked Call short in the expiry of 15th September. The Call expired worthless and so I decided to shift the Call to the next expiry. I also sold a 42000 Call as additional precaution. This makes it a ratio spread with a lower BEP of 40700 and a higher BEP of 42800.

After breaching the ATH of 41800, the Bank Nifty took a breather and plunged to 41100. At the present level, my Iron Fly is in a profit. It is best to sqaure off because there are too many positions and it is not manageable if there is a sudden move either way.

The Iron Fly got into trouble from the very start because the Bank Nifty surged to 41600. To salvage the situation, I added a straddle at 41300 and also moved the 40800PE to 41300. When even this BEP was at risk, I added a Call Calendar of 41400CE Sept and 41800CE of 15th Sept.

The IV is high. Tomorrow is the expiry. So, I set up a new Iron Fly with 40800 as the straddle.

The Bank Nifty opened gap down about 600 points but fortuitously almost immediately recovered. This saved me because my 41000 Puts were bleeding. I also had some naked positions. Anyway, I decided to square off and take new positions.

The Bank Nifty came close to touching the 41000 mark. So, I squared off the puts at 40500 and 40600 and shifted them to 41000PE. This has extended the BEP on the upside to 41300.

The Bank Nifty is very bullish and has crossed 40800. My position is at a no-profit no-loss stage. My options are:

(i) Stay with the position until 41000 is reached.

(ii) Book profits in the 40500 straddle and the 40600 short call. Open a new straddle at 40800 or 40900.

(iii) Square off all positions and open a new Iron Fly at the spot.

There is a relentless surge in the Indices. The Bank Nifty crossed 40600. So, I squared off 39500PE and shifted to 40600PE. This extends the BEP to 41000.