Rs 80 option breakout buy
This is an intraday option-buying system that reads the option's own price chart instead of the index. It picks a NIFTY weekly call and put priced just above ₹80, and buys whichever one makes a new closing high for the day on its 1-minute chart while its RSI is above 60. A 30% stop protects the premium, and once the trade is 30% up the stop moves to cost and starts trailing.How it trades
Results
PRE-BUILT · DEFAULTSWhere it made and lost money
This option-buying system lives or dies by the type of day. In this test 128 trades on trend days earned ₹1,23,523 with a 62% win rate, because a breakout in the option's price kept running and the trail captured it. Quiet sessions with a range under 0.75% lost ₹1,50,633 over 158 trades with only 28% winners: an option making a marginal new high on a quiet day usually fades, and time decay helps it fall to the 30% stop. Days after a normal India VIX between 11.5 and 14.5 lost ₹26,475 over 174 trades. Quiet days were the most common, which is why the year lost money overall.
About this strategy
- At 09:30 and again at 13:00, pick one call and one put of the nearest NIFTY weekly expiry, within ten strikes of ATM: on each side, the cheapest option priced at ₹80 or more.
- Follow each chosen option's own 1-minute closing prices from the open, and its 14-period RSI.
- Between 09:30-11:00 or 13:00-15:00, buy one lot of the first option whose 1-minute close beats every earlier close of the day while its RSI is above 60. If both signal together, the call is taken.
- Place a stop 30% below the price paid.
- When the trade is up 30%, move the stop to cost; after that the stop trails the best price by 30% of the price paid.
- Only one trade is open at a time, up to four trades a day. Anything open at 15:15 is sold.
Why traders use it
Option buyers often look for the moment a premium breaks out, because a strong move in the index shows up as a sharp, fast rise in a near-the-money option. A new high of the day confirms the breakout and RSI above 60 confirms momentum. Choosing the strike by price keeps the amount at risk similar each day, and the move to cost after a 30% gain aims to turn good starts into at least break-even trades.
The year in plain words
On NIFTY from 1 Oct 2025 to 30 Sep 2026, the default rules took 414 trades and won 44% of them, losing ₹47,353 before costs (profit factor 0.89). Winners averaged ₹2,205 and losers ₹1,952, which was not enough given the low win rate. 180 trades hit the 30% stop, 137 exited on the trail and 97 at 15:15. October and September made about ₹19,500 each, but May through August lost every month. After ₹20 per order and bid-ask slippage, the loss widens to ₹76,702 and the drawdown to ₹1.28 lakh.
What the settings do
Risks
- Buying near the high of the day means many entries come right before a pullback, which is why the 30% stop was the most common exit.
- Signals come from one option's 1-minute prices, which can jump or print stale on a thinly traded strike.
- With up to four trades a day, costs add up quickly and turned a modest loss into a much larger one.
- Option premiums can drop more than 30% between ticks on a sharp move, so real losses can exceed the stop.
Who it suits
Option buyers who prefer momentum entries on the option's own chart, want a fixed small premium at risk per trade, and can follow or automate several entries and exits a day.
Questions traders ask
Why look at the option's chart instead of the NIFTY chart?
The option's price combines the index move, time decay and volatility in one number. A new day high on the option itself means the premium is actually rising, not just that NIFTY moved. That is the quantity an option buyer profits from.
Why use ₹80 options?
A price floor keeps the strike close to the money on most days, so the option moves meaningfully with NIFTY, while limiting the rupee amount at risk per lot. On NIFTY weeklies ₹80 usually lands at or slightly out of the money. The floor is a setting.
Is the ₹80 option breakout strategy profitable?
Not in this test. From 1 Oct 2025 to 30 Sep 2026 on NIFTY it lost ₹47,353 before costs and ₹76,702 after ₹20 per order and bid-ask slippage, with only 44% winners. Past results do not guarantee future results.
How does the trailing stop work here?
Once a trade is up 30%, the stop jumps to the entry price. From then on it follows the best price reached, staying 30% of the original price paid below it. A big winner can therefore give back that much before being sold.