Week ended 21st October: Calendar in the Nifty

[Michael Gonsalves]

I sold the Nifty 21st October 18350CE and bought the Oct 18350CE.



The BEPs are at 18178 and 18542.

[Michael Gonsalves]

As the Nifty surged to 18500 and was threatening my BEP, I added another Calendar at 18500. My new BEPs are 18211 and 18662.

[Michael Gonsalves]

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.

 

[Michael Gonsalves]

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.

[Michael Gonsalves]

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.