Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Premium

StratOptions: We learn about ratios, adjustments, and patience, while scoring 2% in returns

capital-mind-premium-featured-image.png

Another low-IV month and we continued to use ratio diagonals, as we did in August. A big gap down on 12th September rattled us. As we'll see, the ratio was too aggressive. With some adjustments, some patience, and some mean reversion in price, we managed to survive. And a separate Bank Nifty trade helped us top-up our returns and reach 2% in September. Let's break down the trades: On Sep 7, we initiated a diagonal ratio spread using puts by selling 300 Sep 8600 . . .

Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial