Traders & Investors Paradise

I closed the Calendar for a handsome profit of Rs. 60,000. Though there was a lot of juice left in the Calendar, I decided that a more optimum situation would be to come closer to the spot.

The steep plunge of 500+ points by the Bank Nifty in the morning and the dramatic recovery thereafter caused the ViX to spike up 6%. This benefited the Calendar and caused a MTM gain of about 1.5% of the capital. However, if the ViX cools down, the gains may evaporate into thin air.

The fall in the ViX is a major problem with Calendars. My Bank Nifty Calendar is already bleeding because the ViX plunged immediately after I set it up. However, the position is safe because it is right in the middle of the tent. If it remains within the tent on expiry, I will get a positive outcome from the trade.

I made multiple adjustments to salvage the Bank Nifty Calendar. However, the savage nature of the fall made it difficult, if not impossible, to manage. I also ran out of money because I had to salvage some other positions as well. Ultimately, I threw the towel and booked a big loss of nearly Rs. 2 Lakh. 

This week I had tried the ATM Straddle Calendar. I realized that it requires more adjustment and so decided to implement the ATM Call Calendar for the coming week.

I exited from this position for a minor gain of about Rs. 10000 and implemented an 'ATM Straddle Calendar". I closed this Calendar for a gain of about Rs. 53000.

The Nifty OTM Calendar was basking in gains of nearly Rs. 1.5 Lakh till today morning. However, the severe plunge in the ViX of nearly 7% took a steep toll on the long options. I barely managed to exit with a breakeven profit.

Today's volatility was too rough to handle. After the PE SLs were hit, the CE SLs were also hit, causing me to lose a big chunk of Rs. 56000.

Today, I treated the Dumb straddle as a dumb straddle and did not make any adjustments. The market was trending downwards. After the short PE SL was triggered, I trailed the SL on the short CEs. This enabled me to take home a gain of Rs 41500. Unfortunately, I had curtailed my position to only 200 units in view of the past losses and this reduced my gains.

I was coasting on profits of Rs. 17,000. However, a sudden move in the Nifty and the Bank Nifty spoiled the show. I exited the Dumb Straddle in a hurry and salvaged a gain of Rs. 6900.