9-mar
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there is a ongoing U.P elections. do not know if it's reason behind the vola increase. the day opened with my buy side PUT in 10 point profit and started to increase from there. on the contrary the sold weekly PUT was premium was not increasing that much. this continued the whole day and slowly the spread itself was both showing green.
another observation was whenever the price was moving down the volatility is increasing and and vice versa. this also was displaying a very different behavior. WHENEVER THE UNDERLYING IS INCREASING THE SOLD PUT WAS INCREASING IN PREMIUM INSTEAD OF DECREASING. THE BOUGHT MONTHLY PUT WAS DECREASING INSTEAD OF INCREASING. This posed an interesting challenge ... when the monthly was displaying unrealised profit and if i am bearish i was not able to add another leg this way.
I also did one blunder. Instead of maintaining the 20400 Weekly Short for the overnight, I have converting it into MIS order and it got squared off. Unfortunately I went outside to drop my spouse and when i returned its already EOD.
Till tomorrow morning, I have a unhedged risky monthly long PUT. I am also loosing the time decay of weekly option from today till tomorrow morning.
Result: See how quickly ... just because of the vola increase .. I am very close to breakeven.
Note: The below equity curve will be uploaded every weekend.