uTrade Algos
Also recognised as Delta Neutral strategy within uTrade Originals, uses intraday selling for call and put options in Bank Nifty weekly options domain, capitalizing on theta decay, but avoids trading on Fridays or event days. However, if the market trends upward or downward, the strategy adopts a directional approach.We earn theta decay if the market is range bound. If the market is trending either upside or downside, the strategy becomes directional.
Note: – Trading in this strategy should be avoided on Friday or Event day.
Factor: Delta Neutral
Margin required: Rs. 125,000 for 1x multiplier
Start Time: 09:16 AM | End Time: 3:05 PM
Execution Days: All Days | Preferable Days: Monday to Thursday
Favourable Conditions:
Fall in Volatility Range
Bound movements
Fall in premiums even with directional move
Risk Factors:
Rise in Volatility
No decay in premiums
Increase in premiums