Week ended 3rd November: Calendar in the Bank Nifty

[Michael Gonsalves]

In the past, I have made the mistake of having multiple strategies like the Calendar and Iron Fly in the Nifty and also the Bank Nifty. When the situation goes haywire and rapid adjustments are required to be made, I am unable to cope in an efficient manner.

Henceforth, I shall do the Calendar only in the Bank Nifty and concentrate my capital in it.

[Michael Gonsalves]

I made the mistake of not maintaining parity between the strikes. While I sold the 39200 strike, I bought the 39600 strike. I did this because the Bank Nifty was bearish at that time. However, when it became bullish and touched 40000+, I found that the gain from the long call could not cover the loss on the short call. I also had too many strikes (I added more even after the initial trade), which created enormous confusion. Also, the markets were extremely violent, swinging from one extreme to the other. I lost track of the plethora of adjustments. Hopefully, I broke even or suffered minimal loss.