Strategy description

Strategy Overview

I am a SEBI-registered Research Analyst (INH000016816). This positional option-selling strategy uses a proprietary indicator (combining trend-following signals, an oscillator, and price action) to build spread positions on the nearest expiry index (Sensex or Nifty). The main position is an ITM CE/PE sale, with a far OTM buy leg for margin benefits.

Trade Logic & Rationale

The strategy profits when Sensex/Nifty continues its direction into the next day, pushing the sold ITM leg OTM to expire worthless on weekly expiry. A long stop-loss on the sold leg manages volatility and gap risk. Targeting a 2:1 reward-to-risk ratio, backtests over the last year show a 21% gain on ₹100,000 capital in the most favorable cycles, with a maximum drawdown of 12% (past performance is not indicative of future results).

Profit & Stop-Loss Management

No fixed profit target; exit occurs around 3:15 PM on expiry day. Stop-loss is set on the ITM sold leg at 1.5× the sold premium.

Position Limits

Retail deployment: up to 5 lots. HNI/prop-desk users: contact via WhatsApp at 9711490798 or email Email.

KYC & Compliance

1. Provide Name, PAN, Date of Birth, Mobile number, and Email for separate KYC.
2. Sign the terms & conditions document sent after KYC submission (Tradetron info alone is not sufficient).

Backtest Data

Backtest over the last year is available upon request. Email Email to receive the report.

Disclaimer

1. “Investment in securities markets is subject to market risks. Read all related documents carefully before investing.”
2. “SEBI registration and NISM certification do not guarantee Research Analyst performance or investor returns.”