ATM Option Selling Strategy by dipen007
By dipen007
Performance Metrics
- Author: dipen007
- Symbol: NSE:NIFTY
- Timeframe: 3 minutes
- Net P&L: +130,106.25 INR (+13.31%)
- Win Rate: 55.0%
- Profit Factor: 1.244
- Max Drawdown: 374,400.00 INR (30.75%)
- Total Trades: 40
- Sharpe Ratio: 0.071
Description
ATM Option Selling Strategy – ExplainedThis strategy is designed for intraday option selling based on the 9/15 EMA crossover, 50/80 MA trend filter, and RSI 50 level. It ensures that all trades are exited before market close (3:24 PM IST).. Indicators Used:9 EMA & 15 EMA → For short-term trend identification.50 MA & 80 MA → To determine the overall trend.RSI (14) → To confirm momentum (above or below 50 level).2. Entry Conditions:🔴 Sell ATM Call (CE) when:Price is below 50 & 80 MA (Bearish trend).9 EMA crosses below 15 EMA (Short-term trend turns bearish).RSI is below 50 (Momentum confirms weakness).🟢 Sell ATM Put (PE) when:Price is above 50 & 80 MA (Bullish trend).9 EMA crosses above 15 EMA (Short-term trend turns bullish).RSI is above 50 (Momentum confirms strength).3. Position Sizing & Risk Management:Sell 375 quantity per trade (Lot size).50-Point Stop Loss → If option premium moves against us by 50 points, exit.50-Point Take Profit → If option premium moves in our favor by 50 points, book profit.Exit all trades at 3:24 PM IST → No overnight positions.4. Exit Conditions:✅ Stop Loss or Take Profit Hits → Automatically exits based on a 50-point move.✅ Time-Based Exit at 3:24 PM → Ensures no open positions at market close.Why This Works?✔ Trend Confirmation → 50/80 MA ensures we only sell options in the direction of the market trend.✔ Momentum Confirmation → RSI prevents entering weak trades.✔ Controlled Risk → SL and TP protect against large losses.✔ No Overnight Risk → All trades close before market close.