Expiry Day Inverted Short Strangle Strategy with Tradetron Algo
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 –
- Nifty Index and Automated with TRADETRON Algo
- Sensex Index and Automated with TRDETRON Algo
What you’ll learn
Strategy Key Advantages
- Best Strategy for expiry day trading with high win rate probability.
- Well-defined risk management with minimum loss potential.
- Complete freedom from continuous monitoring of the front screen and become a disciplined trader through Algo automation.
- 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 |
- Capital Required: ₹1,50,000 (Average utilization ~80%, rising to 85–90% on expiry day)
- Average Trades per Month: ~125 (Entry + Exit)
- 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.
- Exit: Runs till weekly expiry or MTM trigger. No trades remain open on the Nifty expiry day.
Risk Management
- Fixed % Target – Locks in target at predefined levels.
- Fixed % Stop Loss – Prevents large drawdowns
- OTM Hedge Leg – Reduces margin requirements and safeguards against overnight gaps
Who is this strategy for?
- 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.
- Anyone wanting to take control of their personal finances using advanced options strategies to achieve it
- Option traders who want to expand their knowledge about advanced Options Strategies and add new ones to their Portfolio
- Those who want to earn extra money every month to supplement their income.
- Intraday Trader, Options Sellers/Writers seeking to use Algo Trading
- Anyone who wants to learn profitable trading Strategies
- 1. Intraday Trader
2. Options Sellers/Writers.
3. Traders seeking to use of Algo Trading
4. Anyone who wants to learn profitable trading strategies - 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:
- Optionsmindset is not a SEBI-registered investment or financial advisor.
- 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
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What is an Inverted Strangle?
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Why use Inverted strangle instread of normal Short strangle?