I was carrying a strangle from last week. I began converting it into an iron condor on Zerodha as per the new hope I had in mind. I had used margin calculator to estimate the number of hedges I am allowed to buy. However, the reality was much different and I had a hard time managing positions. For some reason, Zerodha factors hedges on both sides. Checkout this tweet for details:
Contrary to my perception, iron condor did not give higher ROI than strangle even though the number of lots were more. I think this is because the number of lots was not more enough. This needs to be experimented further. Also, I found that margin calculators vary from broker to broker. I wonder if there is a standard calculator from SEBI. It is really challenging to trade effectively without knowing margin requirement for positions.
So I sold OTM options from Sep 13 to Sep 16 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||Annualized return till today|
|Rs. 3,941.08||Rs. 7,54,352||0.52%||31.12%||14||5.6|
The following is breakdown of week’s positions
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