uTrade Algos
Intraday directional trading has been derived from strangle strategy.
-Successful trading on directional days
-Not suitable for event days
-Trades in two different strikes
-Used for Bank Nifty’s weekly options based on market direction
-Positions involve buying/selling call and put options
-Minimum margin requirement of Rs 8 lakhs
-Intraday Directional Strangle trade deployed at 9:20 am so deployment is required before 9:20 am for optimal execution
Favorable Conditions:
-Fall in volatility.
-Range Bound movements.
-Directional Move with fall in premiums
Risk Factors:
-Rise in volatility
-No decay in premiums
-U, V and M pattern in market