Combined Strangles and Supertrend (7,2) Charts crossover Stratgey

This strategy is the modified version of the strategy  shared in the  BHARAT OPTION TRADERS SUMMIT held on 8th February 2025

This strategy aims to capitalize on intraday price movements by trading a combined premium chart of OTM5 CE
and OTM5 PE options, using Supertrend (7,2) as a trend filter.
The goal is to maximize profits using theta decay in OTM Premiums.

The combined premium chart follows trends effectively, allowing Supertrend to act
as a reliable entry and exit filter.

Supertrend as a Momentum Filter –Supertrend  provides strong support/re
sistance levels for combined premium movements.

Proft Trailing – Profits are allowed to
run until the exit time or trailed through supertrend
Fixed Stop-Loss Approach – The ₹3,000 MTM stop-loss is to control max loss

The Supertrend line acts as a trailing stop-loss.
In an uptrend, the Supertrend line supports price.
In a downtrend, it acts as resistance
Supertrend uses the Average True Range (ATR) , which
measures volatility.
When the market is volatile, the indicator widens to avoid whipsaws.
In low volatility, it stays close to price, keeping stops tighter.