Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Result of Reverse Iron Butterfly Strategy for Nifty

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Few Days back on March 17th we had kept a watch on the Reverse Iron butterfly Strategy.
And here is the performance of the Strategy

As Nifty got

Position Taken When Nifty @ 5198 on 17th March

TypeStrikeExpiryQuantiyPremium
Short Put5,100.0025-Mar-105018.5
Long Put5,200.0025-Mar-105045.8
Long Call5,200.0025-Mar-105054.55
Short Call5,300.0025-Mar-105016.9

Result after March Nifty Expired at 5228

TypeStrikeExpiryQuantiyPremium
Short Put5,100.0025-Mar-10500.00
Long Put5,200.0025-Mar-10500.00
Long Call5,200.0025-Mar-105060
Short Call5,300.0025-Mar-10500.00

Gain in Shorting 5100PE = Rs18.5
Loss in Longs 5200 PE = -Rs45.8
Gain in Longs 5200 CE = Rs4.45
Gain in Shorting 5300 CE = Rs16.9
Total Loss = RS5.95

Nifty Gained 30pts overall in 5 trading session till expiry. And you lost RS5.95×50 = Rs 297.5

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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