{"id":1832971,"date":"2013-10-27T18:25:36","date_gmt":"2013-10-27T12:55:36","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=1832971"},"modified":"2013-10-27T18:25:36","modified_gmt":"2013-10-27T12:55:36","slug":"usdinr-long-call-condor-fail","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2013\/10\/27\/usdinr-long-call-condor-fail\/","title":{"rendered":"USDINR Long Call Condor #fail"},"content":{"rendered":"<p>We had posed a <a title=\"USDINR \u2013 Does a Long Call Condor make sense?\" href=\"http:\/\/stockviz.biz\/index.php\/2013\/09\/24\/usdinr-does-a-long-call-condor-make-sense\/\" target=\"_blank\">question last month<\/a> whether a USDINR Long Call Condor made sense given decreasing volatility and range-bound behavior. We put the following USDINR October 63.00\/63.50\/64.00\/64.50 Long Call Condor trade on:<\/p>\n<p><a href=\"http:\/\/stockviz.biz\/tag\/USDINR\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1832981\" alt=\"USDINR Long Call Condor Trade\" src=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/10\/image.png\" width=\"739\" height=\"645\" srcset=\"https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/10\/image.png 739w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/10\/image-300x261.png 300w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/10\/image-343x300.png 343w\" sizes=\"auto, (max-width: 739px) 100vw, 739px\" \/><\/a><\/p>\n<p>We would&#8217;ve made <strong>4x<\/strong> if the Rupee traded between <strong>63.10<\/strong> and <strong>64.40<\/strong>. The trade got blown out of water with the Rupee trading in a range around <strong>61.50<\/strong>:<\/p>\n<p><a href=\"http:\/\/stockviz.biz\/tag\/USDINR\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1832991\" alt=\"USDINR 1 YEAR CHART\" src=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/10\/USDINR.png\" width=\"745\" height=\"450\" srcset=\"https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/10\/USDINR.png 745w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/10\/USDINR-300x181.png 300w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2013\/10\/USDINR-496x300.png 496w\" sizes=\"auto, (max-width: 745px) 100vw, 745px\" \/><\/a><\/p>\n<p>Lessons learnt:<\/p>\n<ul>\n<li>The trade carries less risk (and less reward) as you approach expiry. By taking on October contracts back in September, the trade stood out far too long.<\/li>\n<li>The Condor trade makes sense if you get the trading range near expiry right. Which we clearly didn&#8217;t.<\/li>\n<li>On the plus side, the trade was cheap to put on, so <strong><span style=\"color: #ff0000\">down<\/span> Rs. 100<\/strong> with the possibility of <strong>+Rs. 400<\/strong> if we were right was not a bad idea.<\/li>\n<\/ul>\n<p>Next trade will be after mid-November&#8230;<\/p>\n<h6 class=\"zemanta-related-title\" style=\"font-size: 1em\">Related articles<\/h6>\n<ul class=\"zemanta-article-ul zemanta-article-ul-image\" style=\"margin: 0;padding: 0;overflow: hidden\">\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"http:\/\/stockviz.biz\/index.php\/2013\/09\/16\/usdinr-charted\/\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/202444589_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"http:\/\/stockviz.biz\/index.php\/2013\/09\/16\/usdinr-charted\/\" target=\"_blank\">USDINR Charted<\/a><\/li>\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"http:\/\/stockviz.biz\/index.php\/2013\/09\/18\/usdinr-implied-vol-vs-realized-vol\/\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/203196740_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"http:\/\/stockviz.biz\/index.php\/2013\/09\/18\/usdinr-implied-vol-vs-realized-vol\/\" target=\"_blank\">USDINR Implied Vol vs. Realized Vol<\/a><\/li>\n<li class=\"zemanta-article-ul-li-image zemanta-article-ul-li\" style=\"padding: 0;background: none;float: left;vertical-align: top;text-align: left;width: 84px;font-size: 11px;margin: 2px 10px 10px 2px\"><a style=\"padding: 2px;text-decoration: none\" href=\"http:\/\/stockviz.biz\/index.php\/2013\/09\/17\/usdinr-time-to-sell-volatility\/\" target=\"_blank\"><img decoding=\"async\" style=\"padding: 0;margin: 0;border: 0;width: 80px\" alt=\"\" src=\"http:\/\/i.zemanta.com\/202919355_80_80.jpg\" \/><\/a><a style=\"overflow: hidden;text-decoration: none;line-height: 12pt;height: 80px;padding: 5px 2px 0 2px\" href=\"http:\/\/stockviz.biz\/index.php\/2013\/09\/17\/usdinr-time-to-sell-volatility\/\" target=\"_blank\">USDINR &#8211; Time to sell Volatility?<\/a><\/li>\n<\/ul>\n<div class=\"zemanta-pixie\" style=\"margin-top: 10px;height: 15px\"><img decoding=\"async\" class=\"zemanta-pixie-img\" style=\"border: none;float: right\" alt=\"\" src=\"http:\/\/img.zemanta.com\/pixy.gif?x-id=10e99cd5-ef13-42f9-86eb-a1313cd5a5c3\" \/><\/div>\n<p>[stockquote]ATULAUTO[\/stockquote] <\/p>\n","protected":false},"excerpt":{"rendered":"<p>We had posed a question last month whether a USDINR Long Call Condor made sense given decreasing volatility and range-bound behavior. We put the following USDINR October 63.00\/63.50\/64.00\/64.50 Long Call Condor trade on: We would&#8217;ve made 4x if the Rupee traded between 63.10 and 64.40. The trade got blown out of water with the Rupee &hellip; <\/p>\n","protected":false},"author":2,"featured_media":1833081,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[2721],"class_list":["post-1832971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-your-money","tag-usdinr","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1832971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=1832971"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1832971\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/1833081"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=1832971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=1832971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=1832971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}