I am not getting idea. How to create this - NIFTY ATM Put Calendar Spread Strategy On the first trading day of the month — Tradetron Community
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I am not getting idea. How to create this - NIFTY ATM Put Calendar Spread Strategy On the first trading day of the month

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Prateek Sethi

I am not getting idea. How to create this - NIFTY ATM Put Calendar Spread Strategy

On the first trading day of the monthly expiry cycle, at 10:30 AM IST, sell the current-month ATM put and buy the next-month put at the same strike, using equal quantities.

Continuously monitor NIFTY spot against the active spread’s calculated upper and lower breakeven levels. If either level is touched or crossed, close both legs, select the latest ATM strike, and open a new calendar spread with the same position size. Recalculate the breakeven levels after every re-entry.

Repeat this process until the current month's expiry day. At exactly 2:00 PM IST on expiry day, close all remaining positions regardless of profit or loss. Do not open any new spread at or after the final exit time.

Maintain a consistent breakeven calculation method, equal quantities in both legs, and fixed position sizing throughout the strategy.

Ask TT AI

I can only help with one part of this setup from Tradetron's checked docs: choosing the strike for the two legs. The rest (expiries, the 10:30 AM entry, breakeven checks, re-entry and the 2:00 PM exit on expiry day) isn't in the material I have, so I've marked those parts below instead of guessing.

What I can explain: the strike for both legs

Both legs need the same ATM strike. You set it in each leg's Strike field in the Position Builder.

  1. Open your strategy → Position Builder → open the first leg (sell put, current month).
  2. In the Strike field, click Fx and choose the ATM SPOT keyword.
    • ATM SPOT picks the strike from the NIFTY spot price. Your exit rule also watches spot, so this matches.
    • The plain ATM keyword uses the monthly futures price instead. Both are valid. Just use the same one on both legs.
  3. Set the Underlying to NIFTY 50. Leave the "ATM +/- n Step(s)" offset at 0, which means the true ATM strike.
  4. Check that the leg's exchange is right (index options are under NFO), then save.
  5. Do the same for the second leg (buy put, next month): ATM SPOT, same underlying, offset 0.

Example: ATM SPOT(NIFTY 50, 0) on both legs.

Things to watch:

  • The offset doesn't pick the expiry. It counts strikes away from ATM. Setting it to 1 won't select the next-month contract; it moves you one strike away from ATM. Keep it at 0 on both legs.
  • Use the Lot Size keyword for your fixed quantity instead of typing a lot size. Lot sizes change.
  • If a strike comes out wrong, check the leg's exchange and underlying first, then check whether you used ATM or ATM SPOT.

What my sources don't cover

I don't have checked information on these parts, so I can't tell you which keywords or settings to use:

  • Setting the expiry of each leg to current month vs next month
  • The entry rule: first trading day of the monthly cycle, at 10:30 AM
  • Calculating the upper and lower breakevens of a calendar spread and recalculating them after each re-entry
  • Re-entry: closing both legs when spot touches a breakeven and opening a new spread at the latest ATM
  • The final exit at 2:00 PM on expiry day, with no new spreads after that

Entry and exit rules are normally built in the Condition Builder, but I can't give you the exact setup for this logic. For those parts, please use the chat on tradetron.tech. You can also connect your own AI to Tradetron through MCP, which can look up keywords and help you build the legs.

The full keyword list is here: Keyword Documentation — Tradetron

:sparkles: Answered by Ask TT (AI) from Tradetron’s docs. It can be wrong: check before you trade, and reply if something is off. Not investment advice.