Options strategy feedback needed


Well-Known Member
Hi all,

Please tell me the shortcomings on the below option strategy:

Its an intraday bull call spread and put bear spread strategy (executing both)

Bull spread:

Buy the liquid most bull spread (stock options) for the best performing sector of the day

Similarly simultaneously buy the bear spread too.

The above strategy is intraday and looking in terms of income genration:

For eg.

Say Financials are looking strong and SBI is the liquid counter

Buy ATM SBI call and sell 1 strike higher SBI OTM call

And say Pharma looks the weakest and Dr. Reddy is liquid counter

Buy ATM put and sell 1 striker lower ATM put

All the four contracts to be entered into at the same time (almost) and squared off say at 500 to 1000 Rs profit or at EOD.
Wow. 500 to 1000 Rs profit at EOD with one lot. Kindly post an example with real numbers on any trades you took with that idea. If not with one lot, then how many lots and how much margin is blocked.


Well-Known Member
Are you asking if this would be a good strategy or you are telling us it works... If you are asking the answer would be to back test it over a period.

Just want to share what I think here if scenario
1) a strong sector doesnt gain further strength or for that matter a weak sector doesnt further become week. theta and vega can work against this position and debit spread can loose money even though the strong sector remains strong.

2) if a strong sector becomes less strong and weak sector becomer stronger than again you can loose money.

If you have backtested it over some period and think it works share it. I may find some time and back test over some other period provided you share some data to this effect.


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