Well August being over our Nifty option call worked well with our beautiful strategy that was adopted during January this year (refer the post – Nifty Options Trade – Jan 2015). As like every month our call started with selling index call and put options at the same time at the expiry of July Nifty. Nifty started off with sluggish movement and started changing its normal swing. So, situation warranted for closing off our sell position and to turn the strategy to ‘buy’ both call and put options.
The result is a history and since its a passive call we were missed part of the big profits. Following is what happened in Nifty Options Trade in August.
Nifty Option calls Given for August 2015
First Call for Aug 2015
Day of Entry – 30 July 2015
Call – SELL 8100 PE and 8700 CE at July 2015 expiry
MTM shown is for selling 1000 each of 8100 PE and 8700 CE
Profit realized – Rs.57050
Second Call for Aug 2015
Day of Entry – 18.08.2015
Call – BUY 8500 PE and 8500 CE at the close of first call on 18.08.2015
MTM shown is for buying 1000 each of 8500 PE and 8500 CE
Profit realized – Rs.374400
|8500 CE||8500 PE||MTM|
Day to day MTM in your account depicted in the graph below.
First call – Rs.57050 + Second call – Rs.374400 = Rs.431450
Second call is a rare opportunity in the market which appears once or twice in a year. We noticed the first one this year in January and the second one in August. Our strategy to trade this kind of situation worked out remarkably profitable.