Strategy description

Crude Oil Smart Super Straddle — Intraday MCX Options Strategy

Overview

1. Crude Oil Smart Super Straddle is a systematic intraday short straddle strategy for MCX Crude Oil options, designed to capture time decay and intraday volatility contraction. The strategy initiates an ATM short straddle after the NSE market closes (post 3:30 PM), when Crude Oil volatility stabilizes, and manages positions dynamically using predefined stoploss, MTM protection, and adjustment logic.
2. All trades are squared off between 10:45 PM and 10:50 PM, ensuring intraday exposure only.

Key Features

1. Timed Entry & Exit
   1. Entry: After NSE close (post 3:30 PM)
   2. Exit: Between 10:45 PM – 10:50 PM
2. ATM Short Straddle Setup
   1. Simultaneous shorting of At-The-Money Call and Put options
3. Dynamic Adjustments
   1. Rebalances or repairs positions during strong directional moves
4. Strict Risk Management
   1. Each leg has a stoploss and the overall position has MTM protection
5. Intraday Only
   1. All positions are squared off the same day with no overnight risk

Suitable For

1. Traders seeking intraday, non-directional strategies in Crude Oil
2. Users familiar with MCX options and systematic premium selling

Risk Management

1. Per-leg stoploss and daily MTM cap for drawdown control
2. Time-based square-off ensures no overnight exposure

Trade Duration

1. Entry: After 3:30 PM (post NSE close)
2. Exit: Between 10:45 PM – 10:50 PM
3. Type: Intraday only

Underlying Instrument

MCX Crude Oil Weekly Options

Strategy Type

1. Category: Options Selling
2. Approach: Intraday Short Straddle with Adjustments
3. Bias: Neutral

Disclaimer

1. This strategy is developed and published by Adithi Innovations for educational and research purposes only. Trading in derivatives involves substantial financial risk and may not be suitable for all investors. Past performance does not guarantee future results.
2. Adithi Innovations, its creators, or affiliates shall not be held responsible for any direct or indirect financial losses arising from the use or deployment of this strategy.
3. Users are advised to thoroughly understand the strategy logic, risk profile, and capital requirements before deploying it live, and to consult a certified financial advisor if necessary.