10-Mar-2014
Sold seven lot of PE 5000 @ 65.5
Sold two lot of CE 7500 @ 225
Now position is
650 x Short PE 5000 (Dec-14) @ 72.45 (Avg price)
200 x Short CE 7500 (Dec-14) @ 197.5 (Avg price)
Premium earned : 86595
Current premium : 87575
Notional loss : 1020
Capital employed (approx.) : Rs. 4.25 Lac
Sold seven lot of PE 5000 @ 65.5
Sold two lot of CE 7500 @ 225
Now position is
650 x Short PE 5000 (Dec-14) @ 72.45 (Avg price)
200 x Short CE 7500 (Dec-14) @ 197.5 (Avg price)
Premium earned : 86595
Current premium : 87575
Notional loss : 1020
Capital employed (approx.) : Rs. 4.25 Lac
You have received 1.04 Lac premium too. So Capital employed is 3.21 Lac, right?
What was the idea behind choosing month of Dec 2014 for the strategy?
I mean , since you are regularly taking action to adjust delta to keep it neutral, even say June 2014 could have been considered.
By the way, no option prices are quoted for Sept 2014.