Strategy Name – 400 Point Strangle
Instrument – Bank Nifty
Timeframe – Weekly Options
Days to Trade – All Days
Margin Requirement – 1.40 lacs per lot
Ideal Qty – 4 Lots – Margin – 5 Lacs
Yearly Returns – 120% plus
Entry Time – At 9.20 A.M. , If Bank Nifty Index Spot Price is 35000, then Short Sell – 35400 CE and Short Sell – 34600 PE , simultaneously.
Stop Loss – 40% from the Entry Price
MTM Stop Loss – Rs 2500/- per Lot
Exit Time – 3.00 P.M
The Strategy Backtest Results for 1 Year looks promising
The above strategy on a margin on 5 Lacs, shows high Win Ratio of 66% generating returns of about 125% annually which is almost close to 10%* returns per month.
Key Points of the 400 Point Strangle
With our Just Algo – Strangle Tool, this strategy can be easily executed everyday with a click of a button with discipline and can generate excellent returns.
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*Kindly Note – We, at Just Algo believe, Anything above 4-5% returns per month is an excellent expectation for a long term intraday trader in options selling