Period: 28th Jan – 3rd Feb 2026
“From Budget Blues to Trade Deal Euphoria”
This was not a normal trading week.
It had everything — a rare Sunday Budget session, sudden tax surprises, sharp drawdowns, and then a powerful sentiment reversal driven by global news.
Weeks like these don’t test prediction skills — they test portfolio construction and risk discipline.
Market Snapshot
-
Nifty 50: 25,258 → 25,727
-
Bank Nifty: 59,575 → ~60,044
-
India VIX: 14.45 → 12.90 (Volatility cooled after spiking)
-
First half: fear-driven selling
-
Second half: aggressive short covering + fresh buying
-
Volatility expanded first, then collapsed
-
Ideal environment for adaptive & diversified strategies
Union Budget 2026 (1st Feb – Sunday Session)
-
Immediate negative reaction
-
STT hike on futures
-
Buyback taxation moved to capital gains
-
Triggered panic selling & option premium expansion
India–US Trade Deal (3rd Feb)
-
Game-changer for sentiment
-
FII net buying: ₹5,200+ crore in a single day
-
Sharp recovery across indices
Commodity Shock
-
Gold & Silver crashed ~6% on Budget day
-
Liquidity rotated from commodities → equities
Policy shocks create short-term pain, but macro tailwinds dominate medium-term direction.
Credit Spread Performance (Defined Risk in Action)
| Credit Spread Strategy | Weekly P&L |
|---|---|
| Damper Credit Spread | +11.38% |
| Rolling-Carry Credit Spread (Exit-Early) | +6.01% |
| Mathematician’s Credit Spread Overnight | +4.34% |
| Chain-Sync Credit Spread Overnight | +2.09% |
| Theta-Flux Credit Spread Overnight | +1.96% |
| IV-Imbalance Credit Spread Overnight | +1.92% |
| Theta-Harvest Credit Spread (Expiry) | +1.25% |
| Super Entropy Credits | +1.43% |
| Zen Credit Spread Overnight | -3.41% |
| Gamma-Fluxer Credit Spread Overnight | -3.81% |
| Delta-Leverage Credit Spread Overnight | -2.12% |
| Vega-Shift Credit Spread (Expiry) | -2.41% |
| Ratio-Return Credit Spread Exit-Early | -2.13% |
| V-Score Credit Spread Overnight | -5.39% |
| Hamilton’s Credit Spread | -6.44% |
| Delta-Rotation Credit Spread Expiry | -6.92% |
| Convex Credit Spread Overnight | -8.95% |
| Curvature Credit Spread Overnight | -9.66% |
| Drifting Credit Spread Overnight | -11.44% |
Even with extreme news flow, drawdowns stayed controlled.
This is the exact role of credit spreads — survive chaos first, compound later.
Short Strangle Performance (Mixed Outcome)
| Short Strangle Strategy | Weekly P&L |
|---|---|
| Holonomy’s Short Strangle | +3.01% |
| Compressed Strangle | +2.26% |
| Intraday Short Strangle | +1.84% |
| Flux Strangle | +0.99% |
| Expiry Short Strangle | +0.56% |
| Theta-Zone Strangle | +0.20% |
| Carry Forward Strangle | -2.51% |
| Premium-Zone Strangle | -11.51% |
Strangles worked only when risk was reduced fast.
Holding through Budget volatility punished premium sellers.
Short Straddles & Index Strategies
| Strategy | Weekly P&L |
|---|---|
| Quiet Short Straddle | +0.98% |
| Single Lattice Straddle | +0.30% |
| Single Rangetrap Straddle | -1.90% |
| Lattice Short Straddles | -1.43% |
| Stratzy’s Index Strategies | -1.41% |
Flat markets + event risk = low conviction environment
Aggressive Options & RR Systems
| Strategy | Weekly P&L |
|---|---|
| Vacuum GRID (35% SL) | +17.33% |
| Index Scalper | +9.35% |
| SkewHunter | +4.50% |
| SkewHunter TSL | +4.44% |
| Index Sniper | -4.27% |
| Burst RR 1:2 (25% SL) | -6.04% |
| Burst GRID (30% SL) | -13.48% |
Reminder:
High returns came with high emotional and capital swings.
Not suitable as core exposure.
Where Stratzy Alpha Portfolio Fits
Weeks like this are exactly why Stratzy Alpha Portfolio exists:
-
ETFs pledged for margin efficiency
-
Capital split between investing + algo trading
-
Exposure spread across credit spreads, index & selective options
-
Objective: stable equity curve across market regimes
Systematic Alpha. Intelligent Risk.
During event-heavy weeks like Budget + global news, what helps you most?
Hedged strategies
Fast intraday systems
Aggressive RR/GRID
Fully diversified portfolios