#BankNiftyOptions #BATMAN
I had initiated the following batman
+8 X 40200CE
-32 X 40400CE
+24 X 41000CE
+8 X 39800PE
-32 X 39600PE
+24 39000PE
BN opened in the bridge (between inside buy wings) but started drifting down.
cont...
1/n
I had initiated the following batman
+8 X 40200CE
-32 X 40400CE
+24 X 41000CE
+8 X 39800PE
-32 X 39600PE
+24 39000PE
BN opened in the bridge (between inside buy wings) but started drifting down.
cont...
1/n
View was bearish trend and did the following adjustments
- Exit inside buy leg on CE side (exited 40200CE)
- Convert PE side to a butterfly (add 39800PE, exit 39000PE and add 39400PE)
cont... 2/n
- Exit inside buy leg on CE side (exited 40200CE)
- Convert PE side to a butterfly (add 39800PE, exit 39000PE and add 39400PE)
cont... 2/n
To lock-in some profits - brought the PE buy wings inside by 1 strike
Buy 39700PE cover 39800PE
Buy 39500PE cover 39400PE
cont....3/n
Buy 39700PE cover 39800PE
Buy 39500PE cover 39400PE
cont....3/n
At this stage view changed to sideways and converted strategy to a strangle
- exit all buy wings
Now left with
-32 X 40400CE
-32 X 39600PE
contd... 4/n
- exit all buy wings
Now left with
-32 X 40400CE
-32 X 39600PE
contd... 4/n
One more adjustment in CE side - premiums in mismatch
* -32 X 40200CE
* Cover 40400CE
Kept TSL for each leg as double of the then premium.
When CE leg hit TSL, tightened TSL for PE leg
Finally exited PE leg at 2 points
39K for a 8-32-24 lots strategy Max capital - 49Lacs
* -32 X 40200CE
* Cover 40400CE
Kept TSL for each leg as double of the then premium.
When CE leg hit TSL, tightened TSL for PE leg
Finally exited PE leg at 2 points
39K for a 8-32-24 lots strategy Max capital - 49Lacs
@manoj282 It is a tough question to answer. Perhaps IC with adjustments next day might be more beneficial marginwise. Not done a comparative study.
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