Nifty index 50 could not keep calm last week as it dropped all the way till 15600. Even though I was expecting this to happen, my strike selection was not good. I should not take unexpected July 19 gap-down as an excuse especially when I had been anticipating such drama in my blog posts earlier. I should have adjusted strikes on Monday.
The P&L screenshot below does not tell the story. I was witnessing an unrealized loss of more than Rs. 4000 or about 0.65% of deployed capital. I have made a note of it. When I reach week 13, I shall be updating P&L numbers on homepage and this drawdown will also be posted there. Hopefully, this shall be the max drawdown.
So I sold OTM strangles from Jul 16 to Jul 22 whose daily candles were like this:
Here are the results:
|Net Profit (after deducting brokerage)||Capital deployed (approx)||Week’s ROI||Annualized ROI for this week||Total no. of weeks traded till today||Average CAGR till today|
|Rs. 4,048.75||Rs. 6,47,150||0.549%||32.98%||6||43.63%|
Where annualized ROI for week = ((1+week’s return in decimal)^52)-1)*100
The following is breakdown of week’s positions