Strategy description

Directional Options Selling Strategy – Intraday

Strategy Description

1. This is a rule-based directional options selling strategy designed to capture intraday trends with controlled risk.
2. The strategy sells options only when the underlying shows clear directional strength or weakness, avoiding sideways conditions.
3. Entries occur only after confirmation from predefined technical conditions to reduce false signals.
4. The system includes structured stop-losses, profit booking, and time-based exits for systematic, emotion-free trading.
5. Suitable for traders seeking directional conviction with the benefits of option selling (time decay and controlled drawdowns).

Strategy Type

1. Instrument: Options
2. Segment: Index Options (NIFTY / BANKNIFTY / FINNIFTY)
3. Strategy Nature: Directional Option Selling
4. Trading Style: Intraday
5. Deployment: All-day, condition-based

Core Logic (High Level – Non-Disclosed)

1. Directional bias identified using trend and momentum conditions.
2. Sell Call options in bearish scenarios.
3. Sell Put options in bullish scenarios.
4. Trades trigger only when all confirmation conditions are met.
5. No entries during low-probability or sideways phases.
6. Exact logic is intentionally not disclosed.

Risk Management

1. Predefined stop-loss per trade.
2. Limited number of trades per day.
3. Optional profit locking or trailing logic.
4. Time-based exit before market close.
5. No overnight positions.

Capital Requirement

1. Recommended Capital: ₹4,00,000 per 1 multiplier (defaults to 2 lots).
2. Max Risk Per Day: Defined and capped.
3. Suitable for controlled and disciplined capital deployment.

Ideal For

1. Traders seeking a directional edge with option selling.
2. Working professionals who prefer automated execution.
3. Traders who want structured risk over discretionary decisions.
4. Users comfortable with intraday volatility.

Important Notes

1. This is an automated strategy; manual intervention is discouraged.
2. Returns will vary based on market conditions.
3. Strictly follow the recommended capital and multiplier.
4. Options trading involves risk; deploy responsibly.