Strategy description

Banknifty Passive Aggressive

Banknifty Passive Aggressive is an intraday options strategy on Banknifty Monthly Options that dynamically switches between non-directional and directional trades. It uses a mix of option selling and buying to adapt to evolving market conditions.

Strategy Nature

1. Starts with a passive, range-bound setup (e.g., straddle/strangle)
2. Can turn aggressive and go contra to trend if signs of exhaustion or reversal emerge
3. Uses option buying to support directional bias and protect against sharp moves
4. Designed to capitalize on mean-reversion and volatility compression

Key Details

1. Type: Intraday only (no overnight positions)
2. Instrument: Banknifty Monthly Options
3. Capital Required: ₹2.5 Lakhs
4. Maximum Stop Loss: ₹5,000 per day
5. Entry & Exit: Based on volatility triggers and reversal signals
6. Trade Style: Dynamic – shifts between neutral and directional as per market behavior

Why Use It?

1. Adapts to market shifts – doesn’t rely on fixed bias
2. Combines defense and offense – balances time decay with directional momentum
3. Contrarian edge – captures profit from reversals where trend traders may exit