Impact of new margin rule on me and my loss from banknifty for 3 september 2020 expiry

As in my previous post I told about the loss that I booked from the banknifty , the loss was because of the upmove and then the downmove of the banknifty. The banknifty showed a big upmove and then it got corrected few minutes later after opening up and I squared off all my positions at the peak of the upmove.

 

I made the loss in that move as I had 3 positions of the call options sold.

I sold 2 naked calls and one covered call.

Although banknifty reverted back after touching the 25000 strike. I had sold the calls of 25100 ce weekly , 26000 ce monthly and 25000 ce monthly also I had the banknifty etf.

I had to square off the positions because of the below mentioned things

1. The selling up of the calls were giving me more loss as compared to the profit from the etf and hence I squared off all the calls and portfolio. 

2. The new margin rule from the sebi was going to be implemented from September 2020 and hence I wanted to check how it would work in order to avoid any charges and penalties.

My overall P/L

I am still at a overall profit that I managed to get from my covered call in the past 2 months.

Although this week it was huge loss but still overall i am in profit.

I will post about it in the upcoming post when I will be having clear idea about the margin rules.

How will the new margin rule from sebi impact me

As i have been working on the future and options I am already familiar with how margins works, now with the new rules only pledging and unpledging will be more frequent and the money will be locked for T plus 2 days .

I used to trade on banknifty for a weekly position. I used to start a position on Friday and sqaureoff on the expiry day that is on thursday.

Now as the money will be locked there will be chances that I may not be able to take new positions on the next day or I will have to keep the extra cash or margin to take the new positions.

SEBI what have you done and why have you done this.

This new margin rule is full of pledging and unpledging activity. Most the money will be locked in order to get buy and sell of the stocks. I feel the retail investor is the worst effected by this as he will be required a little more money to trade and there will be delay in squaring off and taking new positions.

With the advancement in the technology we have taken a step backward ,things that should have made the processing faster has made the processing slower.