₹60,000 Se Start Karo! Intraday Option Selling Strategy

Summary

Kundan Prajapati presents an intraday Nifty options-selling strategy using Volume Profile Fixed Range, the POC (Point of Control), and price-action reversals. The setup focuses on failed breakouts around the previous session’s POC.

The presenter describes option selling as a potentially calmer alternative to option buying, particularly in sideways markets. However, the examples and performance claims are not independently verified.

Instruments and tools

• Nifty Futures chart as the underlying
• Nifty options: selling an at-the-money (ATM) call or put, with a long option hedge
• TradingView indicator: Volume Profile Fixed Range

No other specific ticker or asset is discussed.

Strategy framework

1. Open the Nifty Futures chart on TradingView and set it to a 5-minute timeframe.
2. Apply Volume Profile Fixed Range to the previous trading day, from the 9:15 a.m. candle through the final candle.
3. Mark the profile’s POC—the price level with the highest traded volume—and draw a visible horizontal line at that level.
4. On the next session, watch how price behaves around the POC. Look for a failed breakout or breakdown, rather than entering as soon as price crosses the level.
5. Wait for a confirming 5-minute candle close or reversal before entering:
   • Bearish reversal: Sell an ATM call and buy a call roughly 200 points away as a hedge.
   • Bullish reversal: Sell an ATM put and buy a put roughly 200 points away as a hedge.
6. Place the stop around the relevant reversal or signal-candle level. One example illustrates a roughly 50-point move in the underlying, but exact stop placement varies in the walkthrough.
7. Exit at a nearby swing level or, as the presenter says he generally does, close the position by 3:00 p.m.
8. If price does not reach the setup or confirm a reversal, do not trade. The presenter also describes taking another entry after a stop-out if a fresh setup appears.

The transcript’s descriptions of gap-up and gap-down scenarios are not entirely consistent. The central rule appears to be to trade a confirmed reversal at the prior-day POC: bearish reversal → call sale; bullish reversal → put sale.

Numbers and performance claims

• The presenter says the strategy can be started with about ₹60,000. One illustrated position shows approximately ₹53,000 in margin.
• He cites ₹1,000–₹2,000 per day as an amount traders may seek, not as a guaranteed return.
• One example shows ₹845 profit, described as 1.6%. Another discusses an approximately ₹1,400 loss followed by a re-entry, ending the day about ₹588 in profit.
• The video claims roughly ₹5,500 over three days in an example and suggests that four trading days in a month could produce 2–2.5%. These are illustrative or backtest claims, not reliable forecasts.
• The presenter refers to a five-to-six-day backtest and says the days shown were profitable.

Risk cautions and disclosure

• The presenter recommends backtesting first and practising with one lot at a time.
• He says the hedge is intended to limit losses, but the strategy is not risk-free. Losses, stop-outs, and unsuccessful re-entries are possible. The claim that sideways markets will not cause losses should not be treated as a guarantee.
• The video’s closing disclaimer states: “Investments in the securities market are subject to market risk. Read all the related documents carefully before investing.”
• No explicit “not financial advice” statement appears in the subtitles.

Presenter/source: Kundan Prajapati, in a Lemonn learning video.