Strategy description

 Nifty Drift Catcher – Next Week

Overview:
Nifty Drift Catcher – Next Week is a systematic weekly short strangle strategy designed to capture time decay (theta) from the NIFTY index options. The strategy focuses exclusively on the next week’s expiry, positioning itself ahead of time to take advantage of early theta erosion and a generally range-bound drift post current expiry.

It is built for traders who prefer a rule-based, emotion-free approach with controlled risk, automated entries, and well-defined exits.

⚙️ Core Logic

• Enters a short strangle around 9:16 AM every Friday or after expiry, targeting the next-week NIFTY options.

• Strike selection is delta-based (around 0.35 delta each side) for optimal premium capture.

• Dynamic monitoring ensures that if the spot crosses the sold strike + premium buffer, the affected leg is exited to prevent runaway losses.

• On breakout, the system introduces adjustment legs to rebalance risk — including partial hedge buying or selling at reduced quantity depending on direction.

• All decisions are rule-driven — no discretionary manual intervention needed.

 Key Highlights

• ? Next-Week Expiry Focus – Gains from early theta erosion starting right after current expiry.

• ⚖️ Delta-Neutral Structure – Maintains balance to minimize directional risk.

• ? Dynamic Adjustment Logic – Repairs or rolls positions automatically when the market moves beyond range.

• ? Fully Automated – Once deployed, executes without manual input.

• ? Stable Weekly Theta Income – Designed to generate consistent returns during normal volatility periods.

• ⏱️ Short Duration Exposure – Limited to one week per cycle, reducing overnight and event risk.

• ? Backtested and Live Tested – Optimized for both stability and drawdown control.

 Risk Management

• Defined risk on each side through fixed premium and delta-based entries.

• Timely exit when spot breaches predefined buffer.

• Optional re-entry logic ensures capital is efficiently redeployed only in favorable setups.

• Strict capital allocation and SL control per trade.

Ideal For

• Those who prefer rule-based, no-emotion execution.

• Users who want systematic exposure to NIFTY options without directional prediction.

⚠️ 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 strongly advised to conduct thorough paper trading and understand position behavior before deploying real capital. Options trading involves substantial risk, and maintaining strict discipline is essential.

? Community & Support:
For more insights, live discussions, and updates, join our Telegram group: Innovative Algoz

shared code :