Expiry Day Inverted Short Strangle Strategy with Tradetron Algo

Categories: Expiry Strategy

About Strategy

Stratgey Description:

An inverted short strangle is a rule-based Systematic risk-defined short straddle options selling strategy with a Fully Automated Algo Setup for a consistent monthly income strategy in the Sensex & Nifty Indices.

  • An inverted short strangle is an advanced options trading position where the strike price of the short call is lower than the strike price of the short put.

    This is technically a “crossed” market state. While it can be entered as a new trade, it is almost exclusively used as a defensive adjustment strategy to manage a losing short strangle.

    1. How it is Constructed
    In a standard short strangle, you sell an Out-of-the-Money (OTM) Put and an OTM Call. The Call strike is higher than the Put strike.

    In an inverted strangle:

    Short Call Strike: Lower

    Short Put Strike: Higher

    Because the Call strike is below the Put strike, both options cannot be Out-of-the-Money at the same time. At least one (or both) will be In-the-Money (ITM) at expiration, guaranteeing that the trade has intrinsic value that you must buy back.

      Strategy is built with –

  1. Nifty Index and Automated with TRADETRON Algo
  2. Sensex Index and Automated with TRDETRON Algo

What you’ll learn

  1. A rule-based Systematic Option Selling Strategy with a Fully Automated Algo Setup.

Strategy Key Advantages

  1.  Best Strategy for expiry day trading with high win rate probability.
  2. Well-defined risk management with minimum loss potential.
  3. Complete freedom from continuous monitoring of the front screen and become a disciplined trader through Algo automation.
  4. No need to know technical analysis, just rule based system trading using Algo.

Strategy Parameter  Details

Strategy Type Options Selling,  Intraday non-directional Strategy.
Trading Instruments SENSEX /NIFTY
Expiry Weekly Expiry
Entry Time: Entry time: 09:25 AM
Exit Time: Exit Time: 03:14 PM or when MAX LOSS  is activated.
Order Type: NAML
Capital Requirement: ₹1,50,000 (non-expiry), ₹2,00,000 (expiry days)  / 1X multiplier.
Max Stop Loss: Max Stop loss: ₹3350 per   1X multiplier
Max Profit No TSL is applied. No fixed target; profit trailing after the threshold is reached
  1. Capital Required: ₹1,50,000 (Average utilization ~80%, rising to 85–90% on expiry day)
  2. Average Trades per Month: ~125 (Entry + Exit)
  3. Entry & Reentry: Runs till weekly expiry or MTM trigger, whichever is first. Multiple entries and exits are possible during a counter’s lifespan. Fresh trades are taken the next day after an exit.
  4. Exit: Runs till weekly expiry or MTM trigger. No trades remain open on the Nifty expiry day.

Risk Management

  1. Fixed % Target – Locks in target at predefined levels.
  2. Fixed % Stop Loss – Prevents large drawdowns
  3. OTM Hedge Leg – Reduces margin requirements and safeguards against overnight gaps

Who is this strategy for?

  1. This strategy is designed for anyone who wants to learn how to generate a consistent income for themselves with minimal risk and without needing to learn to read charts or stare at a computer screen every day.
  2. Anyone wanting to take control of their personal finances using advanced options strategies to achieve it
  3. Option traders who want to expand their knowledge about advanced Options Strategies and add new ones to their Portfolio
  4. Those who want to earn extra money every month to supplement their income.
  5.  Intraday Trader, Options Sellers/Writers seeking to use Algo Trading
  6. Anyone who wants to learn profitable trading Strategies
  7. 1. Intraday Trader
    2. Options Sellers/Writers.
    3. Traders seeking to use of Algo Trading
    4. Anyone who wants to learn profitable trading strategies
  8. Investors
    Stock Brokers
    Investment Advisors
    Finance Professionals
    Analysts

Why Tradetron Algo Trading?

  • Removes emotional decisions
    • Creates repeatable results
    • Makes performance measurable
    • Helps you understand market logic deeply
    • Gives you a powerful edge over impulsive trading

This course shows you exactly how those systems work in action.

Golden Rules

-Do not try to trade based on predicting the market. You will never be able to predict the direction of the beast.

Disclaimer:

  1. Optionsmindset is not a SEBI-registered investment or financial advisor.
  2. Trading with this strategy is not a shortcut to wealth—long-term discipline is essential for consistent results.

Algo Support  & Service

Mobile: +91-9679616248
Email: contact@optionsmindset.in

Strategy Content

Strategy Fundamentals

  • What is an Inverted Strangle?
  • Why use Inverted strangle instread of normal Short strangle?

The Strategy Rules: Inverted Short Strangle Strategy

The Strategy : Fully Automatic Tradetron Algo code

Student Ratings & Reviews

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