Shillong :: After a good beginning of the year, February was the month ended in draw down/negative. It was one of the most difficult month to trade.

The summarized reasons for this could be the following :

• Sudden erratic Gamma moves.
• Indian Interim budget
• FOMC Minutes
• HDFC Bank crush
• Paytm – RBI saga, etc.

Some new phenomenon’s observed in India Market:

• Indian Market does not seemed to be following US and other broader market off late.
• Sudden irrational move with unjustified trend is seen.
• Sudden Gamma spike causing stop loss skipping.
• VIX had risen but the premiums seemed un-sync, sudden spikes in premium, causing difficulties for stranglers and straddlers specially.

How I managed to protect my capital and minimized the net loss in this scenario?

With numerous events, VIX, sudden spikes and drop erratically, had made difficult for straddlers and stranglers. Many losses incurred, and resorted to directly biased hedged trade to have risk defined trades as it was seen due to sudden Gamma spikes, many stop loss skipping.

For now it seems only hedged trade seems to be the safest trade.

My Trade Book

My worst month so far.