uTradealgos

Brahmastra

Also recognised as Delta Neutral strategy within uTrade Originals, uses intraday selling for call and put options in Bank Nifty weekly options domain, capitalizing on theta decay, but avoids trading on Fridays or event days. However, if the market trends upward or downward, the strategy adopts a directional approach.

Factor: Delta Neutral

Margin required:  Rs. 125,000 for 1x multiplier

Start Time: 09:16 AM 

End Time: 3:05 PM 

Execution Days: All Days 

Preferable Days:  Monday to Thursday 

Favourable Conditions:

  • Fall in Volatility
  • Range Bound movements
  • Fall in premiums even with directional move

Risk Factors: 

  • Rise in Volatility 
  • No decay in premiums 
  • Increase in premiums

Default Parameters:

  • Logs: 0,1
  • Net Loss: 1500
  • Net Profit: –
  • Option Type: Sell Call, Sell Put
  • Order Fill Price: 7
  • Order Lot: 1
  • Order Lot Slice: 20
  • Premium Price: Above 75
  • Premium Range: 50%
  • Stop Loss for each leg: 10% strangle (25% single leg)
  • Strike Depth: 2 ITM, ATM 17 OTM
  • Strike Diff: –
  • Symbol: BANK NIFTY
  • Time Interval (sec): NA

This strategy trades in BANK NIFTY weekly options. This is an intraday option selling strategy which sells both Call & Put options. We earn theta decay if the market is range bound. If the market is trending either upside or downside, the strategy becomes directional.

 Note: – Trading in this strategy should be avoided on Friday or Event day.