Week ended 20th January 2022: Calendar in the Nifty

[Michael Gonsalves]

As my Calendar of 13th January was sinking, I had sold the 18300CE and 18500CE of 20th January to salvage the situation. However, as the Nifty recovered, I converted the extra sold positions into a Calendar by buying the 18300CE of 27th January.

[Michael Gonsalves]

The slight plunge in the Nifty helped to recover most of the losses in the Calendar. If the Nifty and the ViX stay stable, there will be a chance to make some money.

[Michael Gonsalves]

The extreme volatility today, where the Indices went from one extreme to the other spooked me. I decided to close the Calendar for a minor profit of Rs. 5000 and to open a new one.

[Michael Gonsalves]

I opened a Call Calendar at 38700CE. However, the Bank Nifty immediately plunged and breached my BEP of 38300. This forced me to open a Put Calendar at 38000PE. The Calendar is bleeding and I have already lost 2.48% MTM. However, if the Bank Nifty expires within the range and the ViX does not plunge much, I can take home a tidy profit.