Strategy description

One trade a week, held overnight, with a hard cap on the loss.

A plain-English walkthrough of this strategy, written for someone who has never traded options, is at tradetron.tech/one-night-a-week.

What it does

On the day before the weekly NIFTY expiry, between 15:15 and 15:20, it sells a call and a put about 50 points either side of where NIFTY is trading, and buys a call and a put 250 points out as protection. Everything is closed the next morning at 09:20. The rest of the week it holds nothing at all — roughly 35 to 45 trades a year.

Why it makes money

An option loses value fastest on its final day. This is paid to hold that last-day decay overnight. The two options it buys cost part of that income, and in exchange put a hard ceiling on what a bad night can cost.

It skips dangerous nights

Before entering, it measures NIFTY’s recent realised volatility against its own trailing year. If volatility is in the top fifth, it does not trade that night. In testing this roughly halved the worst drawdown.

More details at https://tradetron.tech/one-night-a-week/