- Wealth PMS
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 . . .