📘 Strategy Overview: Iron Condor for 31st July Nifty Expiry
This is a hedged option selling strategy with low capital requirement due to defined risk. It profits in a range-bound market and is ideal for traders looking to minimize margin while managing risk.
📊 Position Setup:
| Action | Strike Price | Option Type | Premium (₹) |
|---|---|---|---|
| Sell | 24800 | PE | 50 |
| Buy (Hedge) | 24650 | PE | 30 |
| Sell | 25400 | CE | 40 |
| Buy (Hedge) | 25550 | CE | 20 |
Net Premium Received: ₹40 per lot
Lot Size: 75
Total Net Premium: ₹3,000
Estimated Taxes + Brokerage: ₹102
Max Profit: ₹2,898
Max Loss: ₹6,102
Breakeven Range: 24710 to 25490
📈 Payoff Chart
✅ Why This Strategy?
- Range-Bound Market: Based on daily, hourly, and 15-min charts, Nifty is consolidating.
- Defined Risk: Both sides are hedged.
- Reduced Capital: Margin is low due to hedge (approx ₹60,000–₹70,000 depending on broker).
- Theta Decay Advantage: Time decay favors you as long as Nifty stays in range.
⚠️ Disclaimer:
This content is for educational and informational purposes only. Trading options involves risk and may not be suitable for all investors. Always consult with your financial advisor before taking any positions. The author is not SEBI registered.
