Traders & Investors Paradise

I now have a ratio calendar spread in place. It should (hopefully) be relatively easier to manage.

The market surged to 41640+ causing my MTM to dip to Rs 150000. I exited the position at that stage.

The trade is nicely placed in the center with a MTM gain of Rs 1.75 Lakh. I don't want to carry it overnight because of the FOMC risk tomorrow. I will square if off either by the EOD or if the MTM gain is reduced to Rs 1.50 Lakh.

My Iron Fly is in trouble because the Nifty gapped up and breached the upper BEP. To salvage the situation, I sold a naked straddle of 20 lots (which is half quantity) which has raised the upper BEP to 17925. My other option is to square off the trade and initiate a fresh one.

Can Fin Homes has fallen nearly 15% in two days due to the unexpected resignation of its CEO.

Personally, I feel that there is a knee-jerk reaction and that the stock will recover.

So, I sold two lots of Puts of the strike price of Rs. 540.

I will take delivery of the stock it is closes below Rs 540 by 27th October.

A look at the 'Economic Events' calendar for this week, i.e. Sept 19-23

The Iron Fly is nicely placed in the center. The BEPs are far off. After the FOMC meeting, the IVs will cool down which should lead to decent profits.

The Futures Ratio trade is showing a good profit of about Rs 67000 at present without any incremental adjustments. I intend to square off the trade tomorrow because the next day is the FOMC meeting which may create unmanageable volatility. I will shift the capital to some other trade.

The Bank Nifty is presently at 41100. The trade is quite comfortably placed. I don't want to roll down the short calls because the market is looking bullish and also there is huge premium remaining in the 42000 Calls.

Initially I had a short straddle in the Nifty at 17600 intending it to be an intraday trader. When the Nifty dropped to 17500 I added another straddle. Thereafter, I decided to buy the legs and carry it overnight as an Iron Fly.