SBIN Vega Stripping

Short 280 CE at 7.75

Expecting SBIN to move between 273 and 283 tomorrow and the next day. Assuming vega contraction of call options we are likely to make a profit of 11,110 to -3,000 in two days due to vega stripping! (Vega got inflated today due to sudden BankNIFTY move at the end of the day.)

Hence, Hard stop loss at -6,000. (Considering IV effect against our favour)

The holding time is strictly two days unless specified.

Order cancelled:

Huge gap up. Cancel the trade.

Comment:

Selling 280 CE at 8.2

Comment:

Aftermath -

SBIN opened huge gap up because of the news of RBI’s money infusion. So initially I thought to cancel the trade. Then it is also that when the news will be declared on 15th i.e tomorrow SBIN won’t be getting any money. Bank Baroda and other peers will.

So I sold it and luckily got higher premium. Right now it is still a hold till EOD tomorrow.

Engineer’s India gave a perfect trade!

i.imgur.com/F52I46Q.png

Comment:

Despite hitting stop loss in spot, I held because IV was too high due to RBI event. Today it crashed. LTP - 7.35. Closing this and shifting to 290 CE at 3.1