Strategy description

Strategy Description

This is an intraday directional Options Selling Strategy for NIFTY & SENSEX, designed to capture option premium decay using CPR (Central Pivot Range), Fibonacci Pivot Points, Buffer Confirmation, and RSI Filter. The strategy identifies high-probability directional opportunities while maintaining disciplined trade execution through predefined rules.

Strategy Logic

Bullish Market View:
Sells Put Option (PE).
Simultaneously buys 2 far Out-of-the-Money (OTM) Put Options (PE) in MIS mode as hedge positions to support the short trade and reduce downside risk.
Bearish Market View:
Sells Call Option (CE).
Simultaneously buys 2 far Out-of-the-Money (OTM) Call Options (CE) in MIS mode as hedge positions to support the short trade and reduce upside risk.

CPR & Fibonacci Pivot-Based Entries:
The strategy continuously monitors TC, BC, Pivot, R1–R4, and S1–S4 levels. Once price confirms a breakout or breakdown with Buffer Confirmation and RSI validation,
the strategy generates the appropriate option selling signal while simultaneously executing the required hedge positions.

Risk Management

Fixed Profit Target: Approx. ₹5,000
Fixed Stop Loss: Approx. ₹5,000
Two MIS hedge buy positions for every selling trade
Hedge premium maintained around ₹10 (subject to market conditions)
Single Direction Position Management
No Overlapping Positions
Fully Automated Rule-Based Execution

Key Highlights

Intraday Directional Options Selling Strategy
CPR + Fibonacci Pivot + RSI Based Entries
Automatic Dual Hedge (2 Buy Orders) for Every Sell Position
Buy Hedge Orders Executed in MIS Mode Only
Suitable for Trending and Moderately Volatile Markets
Controlled Risk with Predefined Target & Stop Loss
No Emotional or Manual Decision Making

Strategy Details

Instrument: NIFTY & SENSEX Weekly Options
Strategy Type: Intraday Options Selling with Dual Hedge
Time Frame: 1 Minute
Entry Time: 09:30 AM
No New Entry After: 02:45 PM
Final Exit: 03:20 PM
Capital Required: ₹1,50,000
Profit Target: Approx. ₹5,000
Stop Loss: Approx. ₹5,000
Hedge Orders: 2 Buy Orders (MIS Only) – Approx. ₹10 Premium
Average Trades Per Day: Depends on Market Conditions

Disclaimer

Options selling involves substantial market risk. Past performance does not guarantee future results. We recommend paper trading the strategy before deploying live capital. Always trade with proper risk management and consult your financial advisor before using the strategy in live markets.

Support

@ Email: [email protected]