Strategy description

Intraday Option Selling – Short BANKNIFTY (Current Monthly Expiry)

This is a disciplined intraday option selling strategy that focuses on shorting ATM ±X strikes in BANKNIFTY based on predefined logic. It is optimized to benefit from theta decay and suitable for those seeking a consistent, low-risk trading framework.

Trade Type

Option Selling (ATM ±X Strikes based on defined logic)

Capital Requirement

₹10,00,000 (4 lots)

Key Highlights

1. Strategy uses 5-minute frequency with open price execution
2. Profits from time decay (theta)
3. No redeployment after stop-loss is hit on both legs
4. Evaluates directional breakout opportunities intraday
5. Adjusts positions once per day using predefined stop-loss logic
6. Suitable for traders aiming for consistent, low-risk intraday returns

What to Do

1. Start with Paper Trading: Test for at least 1 week to gain confidence
2. Be Patient: Avoid panic exits—let the system function as designed
3. Multiplier: Use 1x to 3x depending on capital and risk comfort
4. Exit at Target: Manual early exit is allowed on satisfactory profits

What Not to Do

1. Don’t Trade Inconsistently: Run for a minimum of 2 weeks live before making decisions
2. Avoid Manual Override: Stick to the system rules without interference
3. Don’t Chase Trades: One quality setup per day is sufficient

Disclaimer

1. I am not a SEBI-registered financial advisor. This strategy is shared for educational purposes only.
2. Trading in Futures & Options involves significant risk. You must understand these risks before participating.
3. Consult your investment advisor before taking live positions using this or any other trading system.
4. It is strongly recommended to test the strategy in paper trading mode for 4–5 weeks before deploying with real capital.