Strategy description

Underlying - NIFTY Current Week Expiry

Strategy Type – Intraday Straddles

Trade Type: Option Selling

Margin Requirement: ₹10L

Drawdown: 8% of Margin

How it Works

This strategy involves Nifty intraday time-based straddles with different stop-loss strategies. It is essential to maintain patience with the positions taken and allow the positions to play out and eat theta.

The strategy primarily makes money from theta decay, but in a trending market, it may also generate profits from a directional move, particularly when there is an intraday breakout.

What to Do

1. Paper Trading: We recommend putting this strategy in TT Paper Trade mode for the first week. This will help you develop the patience required for sticking to the strategy.
2. Patience: Allow the strategy to work. It only takes a position once a day, makes adjustments with stop-loss, and exits the position by the end of the day.
3. Redeployment: The strategy will not redeploy if the stop-loss is hit on both sides due to choppy markets.
4. Multiplier: The recommended multiplier is 1x to 5x. You can exit the strategy early if you are satisfied with the profits. However, we recommend allowing the strategy to eat theta with you.

What Not to Do

1. Inconsistent Trading: Do not trade this strategy inconsistently. It requires at least 2 weeks of live trading before deciding if it suits your needs.
2. Don’t Panic: This strategy analyzes trade parameters every 1, 3, and 5 minutes before deciding on the next move. The goal is to eliminate market noise and remain in the position to earn theta.

Disclaimer

1. SNWC is not a SEBI-registered Financial Advisor. Traders must understand the risks involved in Futures & Options trading before participating. It is recommended that you consult with your investment advisor before trading in Futures & Options.
2. It is highly recommended to deploy the strategy in Paper Trade mode for 4-5 weeks before going live.