Week ended 6th October: Call Calendar in the Bank Nifty

[Michael Gonsalves]

My original thinking was that I would do a Call Calendar in the Bank Nifty and a naked trade in the Nifty. However, the trade in the Nifty went wrong and I was forced to buy a Call Calendar to salvage it.

I also bought a Call Calendar in the Bank Nifty at 38500 when the Index was at 38300. However, immediately thereafter the Bank Nifty surged all the way to 38800. Thankfully, it cooled down a little bit and closed at 38600.

[Michael Gonsalves]

The Bank Nifty plunged to 38200. However, my position is in a profit of about Rs 80000. I would like to exit and re-enter.

[Michael Gonsalves]

I don't want to square off the 38500 CE because it still has premium worth Rs 183 in it. So, I added a Put Calendar at 38000PE in case the Bank Nifty continues to plunge.  I will shift the 38500CE to 38300 or even 38200 if the softness continues.

[Michael Gonsalves]

The unexpected surge of 1000+ points on the Bank Nifty put my position in a loss. I aggressively sold some puts. There was a bit of panic (because I unnecessarily had several other positions as well). I lost about Rs 1 Lakh. If I would have held on a little longer, the position would have shown a little profit.

Anyway, I squared off and created a new Call Calendar at 38000CE Oct and 38200CE 6th October.