12:45 Short Straddle Intraday Strategy || System Trade || Profitable strategy || #shortstraddle

Topic

Intraday 12:45 short‑straddle system (sell ATM call + ATM put on NIFTY)

Instruments / assets mentioned

• NIFTY index options (primary instrument used)
• Bank Nifty (mentioned for comparison; presenter prefers NIFTY because it is “less violent”)
• Weekly and next‑week expiries (short‑dated options)

Strategy overview

Short straddle: sell the ATM call and sell the ATM put on NIFTY as an intraday trade, entered at 12:45 PM and closed at 2:50 PM the same day (unless adjustments are required).

Step‑by‑step methodology / system rules

1. Entry

   • Place the short straddle at 12:45 PM: sell ATM call and sell ATM put of the current NIFTY strike.
   • Example: if NIFTY = 17,500 → sell 17,500 CE and 17,500 PE.

2. Exit

   • Close the position at 2:50 PM (end of the system window).

3. Strike selection

   • Sell the ATM strikes only.

4. Position sizing

   • Typical: 1 lot per leg (presenter used 1 lot call + 1 lot put).
   • Smaller sizes recommended for lower stress.

5. Stop‑loss (option premium‑based)

   • Place a stop as soon as the trade is executed.
   • Presenter’s default: 30% stop‑loss on the option premium (you may reduce to 25% or 20% depending on risk tolerance).
   • Example (presenter quote): if each option sold at ₹100, “30% stop loss → ₹70”.

Note: the example above is from the presenter’s illustration; see the “Risk notes and cautions” section about inconsistencies in subtitles.

1. If one leg’s stop‑loss is hit before 2:50 PM

   • Option A: close both legs immediately.
   • Option B (if market looks trending): close the losing leg, keep the other leg open until 2:50 PM, and move the remaining leg’s stop to breakeven or lock a small profit (shift to cost or ₹1–2 profit).

2. Expiry selection rules by weekday

   • Monday & Tuesday: use current‑week expiry.
   • Wednesday & Thursday: prefer next‑week expiry (reason: easier to collect ≥₹100 premium per leg).
   • Friday: use current‑week expiry.
   • Caveat: on Wednesdays, if the market is very sideways, you may use the current‑week expiry instead.

3. General approach

   • Treat it as a system trade — enter at 12:45, do other work, return to close at 2:50 unless adjustments are required.
   • For larger lot sizes, actively monitor and adjust rather than fully “set-and-forget.”

Key numbers, timelines and explicit targets/cautions

• Time window: enter at 12:45 PM → exit at 2:50 PM.
• Stop‑loss: presenter uses 30% default (option premium‑based); alternatives: 25% or 20% depending on risk tolerance.
• Premium target per leg: prefers each leg to trade around ≥₹100 so combined credit ≈₹200 (target at least ₹100 per leg).

Performance metrics claimed (presenter’s 30‑day record)

• Win rate claimed: 68% (note: presenter also stated 38% loss in the same discussion — numbers are inconsistent).
• Max drawdown / max loss mentioned: ~₹1,062.
• Max winning streak: 4 days; max losing streak: 3 days.
• Stop‑loss occurrences: presenter notes stop loss was hit on some days (subtitles referenced 13 days stop‑loss hit, 8 days where no stop hit — imprecise).

Profit expectation

• Roughly ₹2,000–3,000 per month per 1 lot (presenter’s estimate). More lots → proportionally more P/L.

Rationale

• Enter after morning volatility / possible V‑shape reversals.
• Theta decay between 12:45–2:50 benefits option sellers (presenter notes especially strong theta decay on Wednesdays).
• Expiry selection (current‑week vs next‑week) is used to manage premium availability and practical ability to collect target credits.

Risk notes and cautions

• This is a short (naked) straddle — unlimited risk if the market moves strongly in either direction.
• Presenter emphasizes discipline and sticking to one strategy; cautions against jumping between strategies after a loss.
• For larger lot sizes, active monitoring and adjustment are recommended.
• Subtitles contain inconsistent or mis‑stated numerical claims (win/loss percentages and stop‑loss phrasing); treat numerical claims cautiously.

Disclosures / disclaimers

• No formal regulatory disclaimer or “not financial advice” statement was present in the provided subtitles. Presenter asked viewers to subscribe but did not present a formal risk disclosure in the provided content.

Presenter / source

• Presenter: Dinesh (channel: Option 8)