calendar ratio backspread

#1
Hi
This is my trade on nifty I opened on friday
Sold 2 lots Nifty aug 5400 call @ 85
Bought 1 lot Nifty oct 5500 call @ 147
Net credit 23 point
Wat r ur views on it ?
 
#2
Hi
This is my trade on nifty I opened on friday
Sold 2 lots Nifty aug 5400 call @ 85
Bought 1 lot Nifty oct 5500 call @ 147
Net credit 23 point
Wat r ur views on it ?
Trying to understand the strategy!

In your view NIFTY will remain below 5400 during August and thereafter it will move above 5500.

However, if NIFTY somehow closes at 5500 in August expiry, then NIFTY requires to be closed at 5677 in October for break even for your trade and above for any profit.

I hope I have understood the strategy correctly!
 
#3
Surely I expect nifty to close around 5400 in aug series. In any case, even it closes @ 5500, i plan to sell 2 lot sep 5500 calls @ around 80 n wait for sep expiry n wait to encash oct call.
 

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