Naked Bull Put Spread

• Universe : Trade 3 scripts only from the approved Bull Put Spread watchlist.
• Original Position Identification: Start with consideration of making positions with 3 lots per script, targeting approximately ₹4K–₹5K premium per lot. Enter only when RSI is 30–39. Just check the margin for these 3 lots in zerodha.
• Position Size : Calculate the number of lots to be sold and purchased with hedge so that the margin requirement is equivalent to the original hedgeless position of 3 lots and the 50% profit opportunity remains equivalent.
• Position Increase : At 50% premium increase square off the hedge, add 1 lot per script at the original premium. At 2.5× premium, add 3 lots at a strike approximately 5% away. Now we continue hedgeless.
• Profit Exit : Exit every open position at 50% profit, irrespective of the underlying trend or market conditions. Place/verify exit orders every morning.
• Expiry & Rollover : Book remaining positions in the 2nd last week before expiry. If still open, exit latest by Thursday of expiry week. Roll over only loss-making positions at the same strike and same 3 lots.
• New Positions & Events : Open fresh positions only in the last week of the expiry cycle and avoid major events such as Results, RBI Policy, Budget, or major regulatory/company events. Manage each position independently.
• Daily Exit Order : Every morning, place/verify the 50% profit exit order for all open positions. No position should remain without its predefined exit order.
• No Re-entry : Once a position is exited, do not re-enter the same script for the same expiry, whether it was the first, second or original position.
• Intraday Trading: Buy at the start of the day and sell by market close only during the first week of a new expiry cycle. Do not follow this rule in other weeks.
• No Impulsive Adjustments: If a trade is taken with an unclear mind, do not rush to adjust the position. Give the position time and follow the predefined system.
• Hedging & Margin Safety: Always hedge positions to reduce margin requirements. Maintain sufficient free margin to avoid forced square-offs.
• Fewer Positions, Better Control: Keep the number of open positions low to preserve averaging capacity, improve trade quality, and reduce stress.
• System Over Emotions: Ignore mental scenarios driven by greed or fear. Avoid overthinking; follow the predefined system consistently and keep trading decisions simple.

Market Environment Checks

• Prefer neutral to mildly bullish market structure
• Avoid strong downtrends
• Prefer elevated IV percentile environments
• Prefer setups after panic moves for theta decay + IV crush advantage
• Avoid major event risk / binary events
• Prefer stable large-cap stocks with strong liquidity and institutional participation

OI / Support Checks

• Identify strongest institutional Put OI support zones
• Ensure Put OI support is stable or building
• Avoid aggressive Put OI unwinding
• Choose short strikes ONLY below strong institutional Put OI support zones

Short Put Selection Rules

• Prioritize survivability over premium collection
• Preferred short put delta range :0.15–0.22
• Prefer far OTM strikes
• Maintain 5–8% safety buffer from spot during high IV conditions
• Avoid aggressive directional positioning

Hedge (Long Put) Selection Rules

• Buy further OTM protective put
• Preferred hedge delta range : 0.03–0.10
• Hedge exists for :
• tail-risk protection
• defined risk
• margin reduction
• Keep spread width controlled and reasonable

Greeks Filters

• Prefer very low gamma
• Prefer positive theta
• Prefer negative vega when possible
• Avoid setups where gamma expands rapidly
• Avoid short strikes where delta may quickly exceed 0.30

POP & Probability Rules

• Prefer high probability setups
• Target POP :preferably > 70%
• Favor consistency over high reward

Entry Rules

• Enter only when :
• price remains above support
• institutional Put support remains intact
• delta is within preferred range
• gamma remains controlled
• IV environment is favorable
• Focus on entry quality to minimize future adjustments
• Use controlled/small position sizing
• Max loss per Investment should remain manageable

Exit & Profit Booking Rules

• Book profits at :
• 50–60% of maximum profit
• Do NOT hold till expiry unnecessarily
• Prioritize smooth equity curve over maximizing final decay

Defensive / Exit Triggers

• Exit or defend if :
• short put delta expands above 0.30
• major support breaks
• Put OI unwinds aggressively
• downside momentum accelerates
• IV expands sharply during downside move

Core Philosophy

• Capital preservation first
• Minimize adjustments
• Prefer high survivability setups
• Accept lower reward for higher consistency
• Focus on low-stress premium collection
• Build smooth long-term compounding rather than aggressive returns

Prompt

Prompt to analyze my existing BPS

Prompt to analyze till where can the stock fall