created : 1 month ago| | live deployment: 1
Strategy description
Indices Weekly Intraday AIVCI1
Trend-Based Weekly Option Spread Strategy:
Overview and Purpose
This is a systematic, delta-based weekly vertical options spread strategy applied primarily to Nifty/Sensex options. It is designed to capture time-value decay and market moves within the weekly cycle on intra day basis. The strategy appeals to investors preferring algorithmic or less hands-on trading with strong risk management and a focus on consistent gains.
Target Users
- Investors seeking systematic, low-effort options income on intraday
- Suitable for both trending, range-bound, and volatile market conditions
Core Trading Framework
| Parameter | Details |
|---|---|
| Initiation | ITM Buy and OTM Hedges |
| Initial Capital | ₹5,00,000 per multiplier (keep 10% extra more margin to avoid peak margin issues) |
| Drawdown Control | Maximum weekly drawdown capped by hedging and systematic stop-losses |
| Adjustment Triggers | Adjust when a leg nears its SL, profit target, or delta breach; capture 50–70% of targets |
Investor Benefits
- Defined Downside: Fully hedged to cap potential losses
- Active De-Risking: Partial profit-booking and tactical adjustments reduce risk exposure
- Minimal Monitoring: Requires brief daily reviews, not continuous screen time
Risks and Mitigations
| Key Risk | Mitigation |
|---|---|
| Overnight/Weekend Gaps | Deep OTM hedges limit exposure |
| Volatility Spikes | End-of-day stop-loss and profit-booking |
| Liquidity/Slippage | Only trade highly liquid index instruments |
Compounding Illustration
The strategy’s value compounds over time due to regular reinvestment —a demonstration of patience leading.
Disclaimer
We are not SEBI-registered. This strategy is for educational purposes only. Past performance does not guarantee future results. Consult a registered investment advisor before live deployment.
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