This is Short Iron Condor on NIFTY Options, specially designed for Intraday option Short traders. This option short BOT is designed to minimize the margin requirement for intraday traders. This strategy can be automated with three Brokers i.e. Aliceblue, Mastertrust and IIFL for now, as and when we integrate other brokers will update you all.
If you are a lover of Short Straddle or Strangle but do not want to invest huge Margin for those trade Intraday, then our Iron Condor strategy will be the best fit for you. Moreover this strategy never goes into a loss if market follows a trend.
Where the BOT buys OTM call and Put and Short ATM Call and Put. The strategy is designed keeping in mind market is in range bound in 60% days and can be Trending too. The Entry is at 09:20 am in the morning and this strategy adjust its Call and Put Short legs automatically based on NIFTY's movement and might remain in Naked Short position as well during a trending day. If the market remains flat or Trending then this strategy performs well, if market becomes completely volatile then it fails.
To avoid margin conflict, first we buy Call and Put far OTM options, and then Short the ATM options or nearest OTM options. During expiry dates we might short ITM options as well.
Target and SL Logic:
The strategy has a built in Target and Stop Loss. Stop Loss is from Rs 1000/- to Rs. 1500/ and Target is generally Rs. 800 to 3000 varies depending on Premium, India VIX etc. Both Stoploss and Target changes on Expiry day, on Expiry day we Stoploss remains unchanged but Target increases as on the day of expiry the probability of premium to become Zero is high. However if the premium price is significantly low then we adjust both StopLoss and Target accordingly.