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 ROI||Annualized ROI for this week||Total no. of weeks traded till today||Average CAGR till today|
|Rs. 3391||Rs. 6,50,708||0.521%||31.03%||7||41.83%|
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.