Strategy description

Weekly IronFly Strategy – Consolidation-Based Approach

This is a consolidation-focused options selling strategy designed to capitalize on sideways market conditions with limited directional movement.

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• Entry Time: Initiated weekly Iron Fly on next day of weekly expiry at 9:20 AM , on once the market shows signs of sideways movement.

• Exit Condition – Trending Market: If the market begins to trend in either direction, causing the combined premium of the straddle to rise above its VWAP, the position is exited immediately.

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• Re-entry Logic:
  Once the market cools down and enters a fresh consolidation phase, the strategy will re-initiate a second straddle at the same strike price as the original.

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• Exit Time:
  All open positions are exited on expiry day by 3:20 PM, or earlier if another trending move is detected.

This approach limits exposure during volatile periods and re-enters only when market conditions are favorable for theta decay in a range-bound environment.