Strategy description

Sensex Flying Basket Conservative

This strategy is a systematic intraday options trading setup tailored for the Sensex Weekly Options, leveraging the Iron Fly (Iron Butterfly) structure and a small directional spread. Designed for traders seeking consistency and controlled risk, the strategy focuses on capturing premium decay with a directional move in a defined risk-reward framework.

The Iron Fly involves selling an at-the-money (ATM) call and put option while buying corresponding out-of-the-money (OTM) call and put options for protection. This creates a neutral position that profits when the underlying index remains range-bound through the trading session. The directional leg helps maximize the profits of the ironfly when the market goes directional.

Key Highlights:

1. Type: Intraday (No overnight risk)
2. Strategy: Iron Fly (Neutral to range-bound outlook)
3. Index: Sensex Weekly Options
4. Entry Time: 9:18 AM
5. Exit Time: 3:10 PM
6. Target Profit: ₹4,500 per day
7. Maximum Stoploss: ₹3,000 per day

The strategy operates within a clearly defined time window—entering shortly after market open at 9:18 AM and exiting all positions before close at 3:10 PM. It is optimized for weekly options, where theta decay and short-term market behaviour can be effectively harnessed within a single trading day.

This approach suits traders who prefer high-probability setups with controlled risk, especially in low to moderate volatility conditions where the index is expected to stay within a certain range.