Strategy description

Crude Oil Smart Super Straddle is a systematic intraday short straddle strategy for MCX Crude Oil weekly options, designed to capture time decay and intraday volatility contraction. The strategy deploys an ATM short straddle after the NSE market closes (post 3:30 PM), a period when Crude Oil volatility typically stabilizes. Positions are actively managed using predefined stop-losses, MTM protection, and adjustment logic.

All trades are compulsorily squared off between 10:45 PM and 10:50 PM, ensuring no overnight exposure.

Key Features

1. Timed Entry & Exit

   Entry: After NSE close (post 3:30 PM)
   Exit: Between 10:45 PM – 10:50 PM

2. ATM Short Straddle Setup

   Simultaneous selling of At-The-Money Call and Put options

3. Dynamic Adjustments

   Position repairs or rebalancing during strong directional or volatility moves

4. Strict Risk Management

   Per-leg stop-loss on Call and Put options
   Daily MTM loss cap: ₹2,500 per multiplier (lot)
   Automatic exit on reaching the maximum allowed loss

5. Intraday Only

   All positions are squared off on the same trading day
   No overnight risk

Suitable For

1. Traders seeking intraday, non-directional strategies in Crude Oil.
2. Users experienced with MCX options trading and systematic premium selling.

Risk Management

1. Defined stop-loss per option leg.
2. Maximum loss per day capped at ₹2,500 per multiplier (lot).
3. Overall MTM protection to prevent excessive drawdowns.
4. Time-based square-off to eliminate overnight exposure.

Trade Duration

1. Entry: After 3:30 PM (post NSE close)
2. Exit: Between 10:45 PM – 10:50 PM
3. Type: Intraday only

Underlying Instrument

MCX Crude Oil – Weekly Options

Strategy Type

1. Category: Options Selling
2. Approach: Intraday Short Straddle with Adjustments

Disclaimer

1. This strategy is developed and published by Adithi Innovations for educational and research purposes only. Trading in derivatives involves substantial financial risk and may not be suitable for all investors. Past performance does not guarantee future results.
2. Adithi Innovations, its creators, or affiliates shall not be held responsible for any direct or indirect financial losses arising from the use or deployment of this strategy.
3. Users are advised to thoroughly understand the strategy logic, risk profile, and capital requirements, including the maximum loss limit of ₹2,500 per day per multiplier, before deploying it in live markets and to consult a certified financial advisor if necessary.