May22-W4: The perfect week for selling strangles

This was a week where Nifty ended almost where it started from. Such scenarios work awesomely for strangle selling. The whole week was smooth except for May 18th. I had a strike of 16450 CE which started giving trouble since Nifty was at 16400.

I was able to neutralize the damage by selling equivalent number lots of 16500 CE. I was very unsure of the market direction at that time. Though I had a feeling that Nifty may go down and there was no  need to book loss on 16450 CE but it was only a feeling and nothing else. So I booked it. I have become a bit ok at booking favorable losses. This is good, even though it means that I could have earned another Rs. 24,000

Net Profit (after deducting brokerage)Capital deployed (approx)Week’s ROITotal no. of weeks traded till todayAverage  weekly return till today
Rs. 40,704.19Rs. 16,31,8862.49%62.09%

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.

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