nifty index 50 trades

Jul21-W5: Nifty Index 50 Option Trades Beat Target CAGR

July 28, 2021 will be remembered as quite a day in history of Nifty Index 50.  The market dropped as if there is no support but there always is. I had written about the support value in my last post and luckily, the market respected it. Even though I could have used that day to make or lose a lot of money, I was occupied with a job interview and could not micro-manage trades.

The P&L screenshot below lies yet again. I witnessed an unrealized loss of more than Rs. 10000 or about 1.55% of deployed capital. This now is my new personal record and I am obviously not proud of it. I really need to think about how to avoid such events.

But there’s another problem called effective utilization of capital. One reason for the ROI remaining in low 30% range is that more than Rs. 50,000 simply remains idle. This happens for at least 3 trading days per week. But that is something which I cannot control.

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 ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAverage CAGR till today
Rs. 3391Rs. 6,50,7080.521%31.03%741.83%

The following is breakdown of week’s positions:

DISCLAIMER: I am not a SEBI registered adviser. All the information provided on this website is for educational / informational purposes only and should not be taken as investment advice.

1 thought on “Jul21-W5: Nifty Index 50 Option Trades Beat Target CAGR”

  1. Pingback: Jul21-W5: Anticipation of big trading move deserves strike correction

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