FUT
ProShares Managed Futures Strategy ETF
stock BATS

My general strategy is theta squeezing on equity derivates by selling options which go against the trend:

1. I prefer to accumulate bluechip monopoly stocks. My portfolio includes majorly of BSE, MCX and KFintech. The stocks don't need to be monopolies but the type you are bullish in the long run on. There is also a good mix of Goldcase, Silvercase, Liquidcase and some high div stocks like Coal India in the mix (purely for pledging - no derivative trading on these).
2. Start by buying on dips and accumulating 25% of a lot through dips. In this process, I get a sense of various resistances, supports and intraday behaviour of the stocks I intend to trade derivatives on.
3. Once significant stocks have been accumulated (enough to get 2x of margin needed to take delivery of 1 lot of the stock you wish to trade derivates for), pledge them.
4. In the first week of every month look for stocks in your portfolio which have either:
* Dipped below the "max pain" of that month's derivatives by 2 option strikes: Sell puts which are 3 strikes lower than current price. I prefer the put-call-ratio to be between 0.5 to 0.7 while entering the trade.
* Risen above the "max pain" of that month's derivatives by 2 option strikes: Sell calls 3 strikes above from current price. I prefer the put-call-ratio to be between 1.1 to 1.2 while entering the trade. I usually avoid selling calls as I believe that in the long run, stocks tend to go up, and selling calls contradicts the selection criteria of the stocks to begin with.
* If the stock is at max pain (+- 1 strike price) and has put-call-ration between 0.75 to 1 or so, then I prefer to buy a FUT + sell call (3 - 4 strikes away). Though I now think it might be better to just buy the stock instead in such scenarios. This part is something I am still unsure of.

5. Square off your position if sold option has lost 50% of it's value 15 days before expiry. Rollover if you fail. DO NOT ATTEMPT DELIVERY. I LEARNT THIS THE HARD WAY.
6. 30% of the profits generated should go to Liquidcase, 30% to gold and silver, remaining to be used for step 1 (or third scenario in step 4).
So far this setup is working well for me. Happy to know thoughts on improving this.
P.S.: None of this is investment advice, I am not a pro or a licensed advisor.
Verified PnL link: [https://console.zerodha.com/verified/d9871799](https://console.zerodha.com/verified/d9871799)

My general strategy is theta squeezing on equity derivates by selling options which go against the trend:

1. I prefer to accumulate bluechip monopoly stocks. My portfolio includes majorly of BSE, MCX and KFintech. The stocks don't need to be monopolies but the type you are bullish in the long run on. There is also a good mix of Goldcase, Silvercase, Liquidcase and some high div stocks like Coal India in the mix (purely for pledging - no derivative trading on these).
2. Start by buying on dips and accumulating 25% of a lot through dips. In this process, I get a sense of various resistances, supports and intraday behaviour of the stocks I intend to trade derivatives on.
3. Once significant stocks have been accumulated (enough to get 2x of margin needed to take delivery of 1 lot of the stock you wish to trade derivates for), pledge them.
4. In the first week of every month look for stocks in your portfolio which have either:
* Dipped below the "max pain" of that month's derivatives by 2 option strikes: Sell puts which are 3 strikes lower than current price. I prefer the put-call-ratio to be between 0.5 to 0.7 while entering the trade.
* Risen above the "max pain" of that month's derivatives by 2 option strikes: Sell calls 3 strikes above from current price. I prefer the put-call-ratio to be between 1.1 to 1.2 while entering the trade. I usually avoid selling calls as I believe that in the long run, stocks tend to go up, and selling calls contradicts the selection criteria of the stocks to begin with.
* If the stock is at max pain (+- 1 strike price) and has put-call-ration between 0.75 to 1 or so, then I prefer to buy a FUT + sell call (3 - 4 strikes away). Though I now think it might be better to just buy the stock instead in such scenarios. This part is something I am still unsure of.

5. Square off your position if sold option has lost 50% of it's value 15 days before expiry. Rollover if you fail. DO NOT ATTEMPT DELIVERY. I LEARNT THIS THE HARD WAY.
6. 30% of the profits generated should go to Liquidcase, 30% to gold and silver, remaining to be used for step 1 (or third scenario in step 4).
So far this setup is working well for me. Happy to know thoughts on improving this.
P.S.: None of this is investment advice, I am not a pro or a licensed advisor.
Verified PnL link: [https://console.zerodha.com/verified/d9871799](https://console.zerodha.com/verified/d9871799)