Positional Straddle : Version 1 [Directional - 1]

Instrument : Bank Nifty

Entry :

Short ATM Straddle at 9:20 am on Friday (Monday if Friday

is holiday)
Note down the price of Bank Nifty (Eg. 42000)

Note down total premium of the straddle

Eg.Total :1000 (CE@500 + PE@500)

CE Side Adjustments:
Divide the total premium of straddle by 2.
Add ½ of premium to Bank Nifty price noted above which
becomes the price for adjustment on upper side.
Exit CE once Bank Nifty crosses above upside adjustment
price range (Eg. 42500).
Re-enterthe closed strike if Bank Nifty reverses and closes
below our strike price of Bank Nifty (E.g. below 42000).

PE Side Adjustments:

Subtract½ of premium from Bank Nifty price noted above

which becomes the price for adjustment on lower side.
ExitPE once Bank Nifty crosses below downside adjustment
range (Eg. 41500).
Re-enter the closed strike if Bank Nifty reverses and closes
above our strike price of Bank Nifty (E.g. above 42000).

EOD Process: (Very Important)

If the strategy is left with only one leg, re-entry of closed leg again between 3:25 – 3:30 PM.

Overnight Protection 1
(If someone don’t want any overnight risk and not
ready to lose earned profits)

After taking re-entry of the closed leg at 3:25, buy

100 far OTM strike each side to the existing straddle
strikes. (Eg. 42100 CE & 41900 PE)
Overnight Protection 2:
(for moderate risk takers but need to stay safe from
huge gap openings)

After taking re-entry of the closed leg at 3:25, buy 500

away OTM strike each side to the existing straddle
strikes. (Eg. 42500 CE & 41500 PE)

You can choose more far away hedges as well, depends on

your risk.

Re-Execute :

Whenever Bank Nifty crosses the breakeven range of

the Straddle (42000 +/-1000(total premium
collected)which is 41000/43000) exit the strategy and
short a fresh Straddle at current ATM and repeat.

Next day:

At 9:20 , exit the hedges if taken any.

If next day Bank Nifty opens between our strike price of bank Nifty and Straddle breakeven price
upside (Eg. 42000 - 43000)

when first 5 mins candle high is broken , exit CE and continue as per CE Adjustment Conditions
mentioned above.

When first 5 mins candle high is not broken, then don’t exit CE.

If next day Bank Nifty opens between our strike price of bank Nifty and Straddle breakeven price
downside (Eg. 41000 - 42000)

when first 5 mins candle low is broken , exit PE and continue as per PE Adjustment Conditions
mentioned above.

When first 5 mins candle low is not broken, then don’t exit PE.

If gap is more than our full range i.e. 1000 points, exit all legs and initiate new ATM Straddle at
CMP of Bank Nifty and repeat.

Exit : Thursday at EOD

Max Loss : 2%

Max Profit : 2% or profits may be trailed as convenient.

 Positional Straddle : Version 2 [Non-Directional]

Instrument : Bank Nifty

Entry :

Short ATM Straddle at 9:20 am on Friday (Monday if Friday

is holiday)
Note down the price of Bank Nifty (Eg. 42000)

Note down total premium of the straddle

Eg.Total : 1000 (CE@500 + PE@500)

Adjustments cum Exit:

Whenever Bank Nifty crosses the range of the Straddle (42000 +/- 1000 (total premium
collected) 41000/43000) exit the strategy and short a fresh Straddle at current ATM and repeat.

EOD Process: (Very Important)

If the strategy is left with only one leg, take entry of closed leg again between 3:25 – 3:30 PM.

Overnight Protection 1
(If someone don’t want any overnight risk and not
ready to lose earned profits)

After taking re-entry of the closed leg at 3:25,

buy one 100 far OTM strikes each side to the existing
straddle strikes. (Eg. 42100 CE & 41900 PE)

Overnight Protection 2:
(for moderate risk takers but need to stay safe from
huge gap openings)

After taking re-entry of the closed leg at 3:25,

buystrike 500 away OTM on each side to the existing
straddle strikes.
(Eg. 42500 CE & 41500 PE)

You can choose more far away hedges as well depend on your risk.
Re-Execute :

Whenever Bank Nifty crosses the range of the Straddle

(42000 +/- 1000 (total premium collected) which is
41000/43000) exit the strategy and short a fresh
Straddle at current ATM and repeat.

Next day:

At 9:20 , exit the hedges if taken any.

If next day Bank Nifty opens between our strike price of bank Nifty and Straddle breakeven price
upside (Eg. 42000 - 43000)

when first 5 mins candle high is broken, exit the strategy and short a fresh Straddle at current
ATM and repeat.

When first 5 mins candle high is not broken, then don’t exit

If next day Bank Nifty opens between our strike price of bank Nifty and Straddle breakeven price
downside (Eg. 41000 - 42000)

when first 5 mins candle low is broken , , exit the strategy and short a fresh Straddle at current
ATM and repeat.

When first 5 mins candle low is not broken, then don’t exit .

If gap is more than our full range i.e. 1000 points, exit all legs and initiate new ATM Straddle at
CMP of Bank Nifty and repeat.

Exit : Thursday at EOD

Max Loss : 2%

Max Profit : 2% or profits may be trailed as convenient.

 Positional Straddle : Version 3 [Directional - 2]

Instrument : Bank Nifty

Entry :

Short ATM Straddle at 9:20 am on Friday (Monday if Friday

is holiday)
Note down the price of Bank Nifty (Eg. 42000)

Note down total premium of the straddle

Eg.Total : 1000 (CE@500 + PE@500)

CE Side Adjustments:
Divide the total premium of straddle by 2.
Add ½ of premium to Bank Nifty price noted above which
becomes the price for adjustment on upper side.
Exit CE once Bank Nifty crosses above upside adjustment
price range (Eg. 42500).

Divide the total premium of straddle by 4

Add1/4thpremium to Bank Nifty price noted above which becomes the price for re entry on
upper side.

Re-enter the closed strike if Bank Nifty reverses and closes below that price of Bank Nifty (E.g.
below 42250).
PE Side Adjustments:

Subtract ½ of premium from Bank Nifty price noted above

which becomes the price for adjustment on lower side.
ExitPE once Bank Nifty crosses below downside adjustment
range (Eg. 41500)

Divide the total premium of straddle by 4

Subtract 1/4th premium from Bank Nifty price noted above

which becomes the price for re-enter on lower side.

Re-enter the closed strike if Bank Nifty reverses and closes above that price of Bank Nifty (E.g.
above 41750).

EOD Process: (Very Important)

If the strategy is left with only one leg, take entry of closed leg again between 3:25 – 3:30 PM.
Overnight Protection 1
(If someone don’t want any overnight risk and not
ready to lose earned profits)

After taking re-entry of the closed leg at 3:25,

buy one strike OTM each side to the existing
straddle strikes. (Eg. 42100 CE & 41900 PE)

Overnight Protection 2:
(for moderate risk takers but need to stay safe from
huge gap openings)

After taking re-entry of the closed leg at 3:25,

buy strike 500 away OTM on each side to the existing
straddle strikes. (Eg. 42500 CE & 41500 PE)

You can choose more far away hedges as well depend on your risk.

Re-Execute :

Whenever Bank Nifty crosses the range of the Straddle

(42000 +/- 1000 (total premium collected) which is
41000/43000) exit the strategy and short a fresh
Straddle at current ATM and repeat.

Next day:

At 9:20 , exit the hedges if taken any.

If next day Bank Nifty opens between our strike price of bank Nifty and Straddle breakeven price
upside (Eg. 42000 - 43000)

If first 5 mins candle high is broken , exit CE and continue as per CE Adjustment Conditions
mentioned above.

*If first 5 mins candle high is not broken, then don’t exit CE.
If next day Bank Nifty opens between our strike price of bank Nifty and Straddle breakeven price
downside (Eg. 41000 - 42000)

If first 5 mins candle low is broken , exit PE and continue as per PE Adjustment Conditions
mentioned above.

*If first 5 mins candle low is not broken, then don’t exit PE.

If gap is more than our full range i.e. 1000 points, exit all legs and initiate new ATM Straddle at
CMP of Bank Nifty and repeat.
Exit : Thursday at EOD

Max Loss : 2%

Max Profit : 2% or profits may be trailed as convenient.

 Positional Straddle : Version 4 [Combination]

Instrument : Bank Nifty

We take entry of 3 lots straddle at 9:20 and handle one as per conditions mentioned at
Version 1, one as per conditions mentioned at Version 3, directional systems and the last one
as per Version 2, which is a Non-Directional System.

Exit : Thursday at EOD

Max Loss : 2%

Max Profit : 2% or profits may be trailed as convenient.