Theta Contra Straddle
Strategy in Brief:
Theta Contra Straddle
Sells ATM BankNifty & Nifty Straddle for Intraday Basis – Weekly Options. TCS is a contra Strategy that is hedged for margin reduction – As a contra strategy some times it will behave contrary to the market i.e. may or may not book legs in trending markets – it may also book the winning leg first and then book the losing leg.
Order Type: MIS Order
Entry Time: 9:16 AM
Exit Time: 14:50 PM
Daily Single Counter
SL per Counter: -5000
Target per Counter: 5000
Track our trades via our Live Shared Code:
How it Works
- This is an entirely intraday strategy, and you should keep patience with the positions taken and allow the positions to play and eat theta.
- The strategy has a fixed SL as a % of entry price per leg. This number is determined by backtest to have the best possible return for you.
- The strategy makes money from theta decay and in case of a trending market, it will make money from a directional move as well, mostly when there is a breakout in Intraday.
What to Do
- Fire and Forget. Leave it in auto mode and see the magic. We recommend you put this strategy in TT Paper Trade for the first week, this will help you build patience required for sticking to the strategy.
- Be Patient. Allow the strategy to work. It only takes position once a day, adjustments are made with SL and exits the position by end of the day.
- The strategy will not be redeployed if SL is hit on both sides due to choppy markets.
- Recommended Multiplier is 5x to 20x.
- You can however exit the strategy if you like the profits you have made. However, we recommend you eat theta with us.
What Not to Do
- Don’t trade this strategy inconsistently. You need to give it at least 2 weeks in live before deciding if it is useful for you or not.
- Don’t Panic, this strategy analyzes trade parameters every 5m, 10m and 15m before deciding the move. The objective is the remove the noise and remain in position and earn theta
Disclaimer: Strategy One is not a SEBI-registered advisor. We are not liable for any losses as a result of using this strategy. Please consult with your Financial Advisor before Trading. We strongly recommend to paper trade the strategy for at least a fortnight before deploying it live.