Theta Decay Intraday

Theta Decay Intraday

This is an intraday options selling strategy traded on the weekly expiry where conditional on market conditions we will be short a naked option and/or a hedged option position to gain from decay of theta.
Volatility: high leveraged Expected Returns *: 17.0%

* based on past 7 year backtest

Performance

More Details
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Why should you invest?

This is a good consistent strategy for retail to earn a premium by selling options. This is a highly leveraged option buying strategy that takes can earn a good consistent return month on month on the capital deployed.

Mechanism

This is an intraday options selling strategy traded on the hedged option strangles on weekly expiry. We will be selling a call strangle or put strangle based on momentum signals based on market conditions.

Universe

Weekly options on Nifty and Banknifty

Rebalancing Frequency

Daily

Risk Management

This is a highly leveraged options buying strategy. We do not recommend anyone who does not have an understanding of derivatives and options and the risk associated with them to use this.

Allocation

Single lots on weekly options on Nifty and Banknifty. Users can buy multiple lots


Performance Metrics

Disclaimer: The content and data available in the material prepared by the company and on the website of the company, including but not limited to index value, return numbers and rationale are for information and illustration purposes. Use of back-tested data has inherent limitations including the following: The results do not reflect the results of actual trading or the effect of material economic and market conditions on the decision-making process, but were achieved by means of retrospective application, which may have been designed with the benefit of hindsight. Actual performance may differ significantly from back-tested performance. Information present in the material prepared by the company and on the website of the company shall not be considered as a recommendation or solicitation of an investment or investment strategy.

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