Strategy description

Strategy Description: Positional Stock Options Buying Strategy

This strategy is designed to trade highly liquid NFO stock options on a positional basis. It buys stock options when the pre-defined conditions are satisfied and holds them until the trend reverses. The strategy aims to capture profits from the directional movement of the stock while managing risk with stop loss and reversal strategies.

Key Details:

1. Capital Required: ₹1,50,000 for buying stock options with additional buffer amount.
2. Trading Instrument: NFO Stock Options (Call or Put)
3. Strategy Type: Positional Option Buying
4. Average Trades: 30–40 trades per month
5. Target: No fixed target; exits are based on trend reversal.
6. Stop Loss: Exits occur based on trend reversal as per the strategy conditions.
7. Trading Timeframe: Intraday with no overnight positions carried.

Trading Methodology:

1. Trades are initiated based on price action, trend analysis, and stock selection criteria.
2. The strategy buys stock options (Call or Put) when the pre-defined conditions are met.
3. It exits the position when the trend reverses or the stop loss is triggered.
4. Multiple entries may occur within a single day, and only one leg (either Call or Put) will be active at any time.

Important Notes:

1. It is recommended to paper trade for at least 2 months before going live.
2. All trades are CNC (Cash and Carry) orders and require full margin.
3. Paper trading results may differ from live auto deployment due to slippage and other platform limitations.
4. It is essential to monitor the strategy to ensure proper trade execution and manage any potential errors manually.
5. If not exiting automatically, you should close all trades manually to avoid errors and penalties, especially before the expiry date.
6. While paper trading, check the price and trade timing in your broker chart to ensure the strategy's performance matches expectations.

Disclaimer:

I am not a SEBI-registered analyst. This strategy is purely for educational purposes, and I do not take responsibility for any profit or loss incurred by users. Please understand the inherent risks in trading and seek advice from a qualified financial advisor before using the strategy. Use paper trading first to assess the behavior and performance of the strategy. The strategy operates at the user’s own risk, and I am not liable for any losses. Ensure to monitor your account for any discrepancies during live deployment.

Contact Information:

WhatsApp: +91-7978009091

Email: [email protected]