Sep21W3 spread ROI

Sep21-W2: Nifty Option Spread Trades Give Same ROI

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 ROIAnnualized ROI for this weekTotal no. of weeks traded till todayAnnualized  return till today
Rs. 3,941.08Rs. 7,54,3520.52%31.12%145.6

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.

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