Strategy description

Directional Duo – NIFTY & BANKNIFTY Monthly Hedge Selling

“Dominate Direction. Defend Capital.”

Description

Directional Duo is a positional options selling strategy that combines directional exposure on both NIFTY and BANKNIFTY using monthly options. The strategy identifies trending behavior and builds positions accordingly — while ensuring risk control through carefully structured option hedges.

By diversifying across two major indices and maintaining defined risk with limited open trades, this strategy offers a robust positional framework suited for traders seeking consistent returns over a multi-week holding cycle.

Key Highlights

1. Type: Positional Option Selling (With Hedges)
2. Instruments: NIFTY & BANKNIFTY Monthly Options
3. Capital Requirement: ₹10,00,000 per 1 Multiplier
4. Holding Period: Typically 10–20 calendar days per cycle
5. Entry Timing: Any day based on trend confirmation
6. Exit: Before expiry or on defined target hit
7. Number of Trades per Cycle: Low to Moderate (2–4 sets generally)
8. Style: Directional, with clear hedge structure for overnight protection

Why Trade Directional Duo?

1. ⚙️ Positional Simplicity: No daily execution stress
2. ⚖️ Defined Risk: Hedges in place for all trades
3. ? Directional Edge: Trend-following bias for amplified returns
4. ? Diversification: Exposure to both NIFTY & BANKNIFTY
5. ? Low Trade Count: Suited for traders preferring minimal activity with high intent

Disclaimer

Adithi Innovations is not a SEBI-registered investment advisor. This strategy is intended for educational and informational purposes only. Past performance is not indicative of future results. Users are advised to conduct thorough paper trading and understand position behavior before deploying real capital. Option trading involves substantial risk, and discipline is essential.