Strategy description

0-DT Short Strangle

The 0-DT Short Strangle strategy is an intraday option-selling setup designed to capture premium decay on Bitcoin (BTC) options that expire the same day. The position is initiated at 4:00 PM and squared off by 5:28 PM, allowing traders to take advantage of time decay and volatility contraction within a short duration.

Key Details:

How It Works:

At 4:00 PM, the strategy simultaneously sells an ATM (At-the-Money) Call and Put option of BTC for the current expiry. This creates a short strangle position, benefiting from range-bound price action and rapid premium decay. The position is automatically exited at 5:28 PM or earlier if the stop loss triggers.

Risk Management:

1. The maximum allowed loss is 200% of the total premium collected.
2. This strict stop-loss ensures large directional moves are capped.
3. A 5% slippage is factored in for realistic execution.

Note:

1. Trading looks easy when the chart agrees with you — until it doesn’t!
2. This strategy works best in trending markets, but every setup carries risk.
3. Deploy this strategy strictly at your own risk and discretion.
4. Always use proper stop-loss and capital management before going live.