ЁЯТб Welcome to Hedge the Edge – Your hub for smart, multi-asset derivatives trading.
We provide daily technical analysis and actionable F&O strategies for two high-octane worlds: the benchmark Nifty 50 index and Bitcoin/Ethereum options on Delta Exchange India.
Conviction over guesswork. Hedged setups. Disciplined trade plans.
Options trading involves significant risk and is not suitable for every investor.
Please ensure you understand the risks involved and consult with your financial advisor
before participating. As per SEBI guidelines, past performance does not guarantee
future results. Trade responsibly.
Options trading involves significant risk and is not suitable for every investor.
Please ensure you understand the risks involved and consult with your financial advisor
before participating. As per SEBI guidelines, past performance does not guarantee
future results. Trade responsibly.
Options trading involves significant risk and is not suitable for every investor.
Please ensure you understand the risks involved and consult with your financial advisor
before participating. As per SEBI guidelines, past performance does not guarantee
future results. Trade responsibly.
The strategy was based on a bullish bias with price above key EMAs, support at 4,306.75, and resistance at 4,349.15. Option chain showed high put OI at 4,300 and call OI at 4,350 with elevated IV. A Bull Put Spread was selected (Sell 4,300 Put, Buy 4,250 Put) to capitalize on the bullish outlook and high put OI.
Market Outcome
The market saw a steady uptrend with a key movement above 4,320.33, indicating a breakout. No false breakout occurred, with OI shifting towards higher calls and volatility remaining elevated.
Strategy Performance
P&L (Points):25 (50 - 25)
P&L (₹):₹1,250 (25 points * 0.1 ETH * 500 multiplier)
Maximum Drawdown:10 points
Expected vs Actual:Expected 50 points, Actual 25 points
Profit Achievement
Achieved: ₹1,250 of ₹2,500
Learnings & Observations
Chart Analysis: Yes, the bullish trend and support levels held.
OI Data: Supportive, with call OI increase aligning with price movement.
Execution: No significant bias, timely execution.
How to Re-Strategize
Extend holding period to capture full 50-point target with a trailing stop. Switch to a Bull Call Spread at 4,350/4,400.
Forward View
Potential re-entry on pullback to 4,320 with a Bull Call Spread. Will wait for confirmation.
The strategy was based on a range-bound bias with EMAs (20>50>100>200) showing a downward slope, support at 110,561.0, and resistance at 111,692.6, confirmed by a Stoch RSI crossover above 20. Option chain analysis highlighted high IV and significant OI clusters at 110,000 (put) and 115,000 (call) strikes. The selected strategy was an Iron Condor with strikes at 110,000 (put) and 115,000 (call), leveraging the range-bound outlook and high IV.
Market Outcome
The market experienced a breakout above 111,692.6 resistance, followed by a sharp upward move to 111,897.0 by 03:00 on Sep 08, 2025. Key movements included a false breakout earlier, an OI shift towards higher call strikes, and increased volatility.
Strategy Performance
P&L (Points):-573 ((-573) = 1,200 - (347 + 680))
P&L (₹):-₹48,705 (-573 * 85 * 0.01 * 100)
Maximum Drawdown:$1,500
Expected vs Actual:Expected payoff was $1,027.0; actual outcome was a loss of $573.0
Profit Achievement
Achieved: -$573.0 of $1,027.0
Learnings & Observations
Chart Analysis: Partially; the range-bound bias was invalidated by the breakout.
OI Data: Misleading; the OI shift to higher calls was not anticipated early enough.
Execution: Hesitation in adjusting the strategy during the false breakout led to missed hedging opportunities.
How to Re-Strategize
Adjust by rolling up the call strike to 116,000 and adding a bear call spread to reduce loss. Alternative: Switch to a bull call spread with strikes at 112,000 and 113,000 to capitalize on the upward trend.
Forward View
A bull call spread setup is likely if the price holds above 111,897.0. I’ll wait for confirmation with a pullback to 111,600 before re-entering.
The strategy was based on a bearish bias with the price below the 200 EMA, support at 24,743.95, and resistance at 24,969.00. Option chain analysis showed high Put OI at 24,400 and Call OI at 24,700 with elevated IV. The selected strategy was a Bear Call Spread with strikes at 24,700 (short) and 24,800 (long), leveraging the bearish outlook and high Call OI.
Market Outcome
The Nifty 50 index saw a sharp upward movement, reaching 24,791.20 (+0.13%) by 04:40 PM IST on Sep 08, 2025, indicating a false breakout above the resistance level. Key movements included a brief pullback followed by a surge, with OI shifts showing increased activity at the 24,700 strike. Volatility remained elevated.
Strategy Performance
P&L (Points):-50 (max loss potential not fully realized)
P&L (₹):-₹3,750 (50 × 75 lots, partial loss)
Maximum Drawdown:₹3,125
Expected vs Actual:Expected payoff was ₹3,750, but actual outcome resulted in a partial loss of ₹3,750 due to the upward move invalidating the bearish setup
Profit Achievement
Achieved: -₹3,750 of ₹3,750
Learnings & Observations
Chart Analysis: Partially; the bearish bias was invalidated by the upward breakout.
OI Data: OI data at 24,700 was initially supportive but became misleading as the market moved higher.
Execution: Over-reliance on bearish bias may have led to delayed exit; no major execution errors.
How to Re-Strategize
Adjust by adding a protective put at 24,700 to limit downside risk. Switch to a Bull Put Spread with strikes at 24,800 (short) and 24,700 (long) to align with the current upward trend.
Forward View
Next possible trade setup: Wait for a pullback to 24,743.95 with Stoch RSI confirmation before re-entering a Bull Put Spread. Will wait for confirmation rather than re-enter immediately.
