🔴 Live | HNI Style Option Trading Strategy With Kundan Prajapati

Finance-Focused Summary

Kundan Prajapati presented a hedged Nifty call-ratio strategy he calls the HAI (High Net Worth Individuals) Strategy. He described it as a rules-based weekly options-selling approach intended to limit risk and scale to larger capital. The performance and risk figures below are the presenter’s claims and have not been independently verified.

Strategy Framework

• Instrument: Nifty index call options.
• Entry: Monday at 9:45 a.m.
• Expiry: The following Tuesday’s expiry, described as roughly eight days away at entry.
• Strike selection: A 1:3:2 call ratio based on the spot price:
  • Buy 1 lot about 200 points above spot.
  • Sell 3 lots about 400 points above spot.
  • Buy 2 lots about 600 points above spot.
  • For example, with Nifty at 23,000: buy 23,200 calls, sell 23,400 calls, and buy 23,600 calls. Another example used spot at 24,900 and strikes at 25,100, 25,300, and 25,500.
• He also referred to the structure as a broken-wing butterfly. If the relevant strike ended in 50, he said to use the next strike instead.
• Target and stop-loss: Each is set at 1% of deployed capital.
• Time exit: If neither is reached, close the position at the end of Friday.
• No re-entry: After exiting at the target or stop-loss, do not re-enter that week; wait until the following Monday.

He said the simplified rules do not require chart analysis or routine adjustments. However, he also mentioned additional credit/debit rules that he did not disclose, and said he makes adjustments in some scenarios.

Risk, Backtest Claims, and Limitations

• The presenter said the strategy’s Value at Risk (VaR) was below 10% in his framing and described its downside exposure as small.
• Examples shown during the session included maximum-loss estimates of roughly 10.6%–11.5% on the upside. Downside-risk figures varied, ranging from about 0.1%–1% to a separate example of around 5%.
• Discussing the sharp gap-up on 3 February, he estimated that the position could have lost around 2.5%–3% if exited after the market opened, despite the normal 1% stop-loss. He attributed the overshoot to the gap and opening spreads or slippage. He described 4%–5% gap-ups as rare; this frequency estimate was his assertion.
• He reported a backtest covering roughly September–November 2025 (elsewhere described as September–December 2025, while also calling it a three-month test). He cited about 8% return for the period, or around 13% using additional rules, and an estimated 75%–80% accuracy. A displayed probability of profit was 78.54%. These are short-period, presenter-reported figures, and he encouraged viewers to test the strategy themselves.
• He said the strategy was developed after Nifty expiry moved to Tuesday, which was why he did not provide a longer historical backtest. He also cautioned that holding positions over weekends can expose traders to news-driven gaps.

Capital Guidance and Other Trading Views

• He said options selling was unsuitable for very small accounts. His suggested figures were ₹5 lakh as a minimum for learning and ₹10–20 lakh as trading capital.
• He said one lot might be possible with ₹2 lakh but would likely not generate meaningful income, and suggested considering equity swing trading instead.
• He characterized option buying as loss-making for many traders he had observed, while acknowledging that directional trading can offer higher returns with higher risk. These were his personal views.
• He compared the strategy with other non-directional option structures—including iron condors, straddles, strangles, calendars, iron flies, credit spreads, and butterflies—and argued that the relevant comparison is the size of potential losses, not whether losses can occur.
• He said traders could automate entries and exits through a platform or code, though he traded the strategy manually.

Disclosures and Cautions

• No explicit “not financial advice” disclaimer was given. The presenter stated that markets and options trading involve risk, losses are possible, and there is no “Holy Grail” strategy.
• He urged viewers to backtest and forward-test before trading. He presented the setup as a concept rather than a recommendation to copy it exactly, and said some of his credit/debit rules were not shared publicly.

Instruments and Topics Mentioned

Nifty options; calls; option selling and hedging; equity swing trading; prop trading; iron condors; straddles and strangles; calendars; iron flies; credit spreads; butterflies; “Batman” and other named strategies; implied volatility and Greeks, including gamma.

Presenters and Sources

Kundan Prajapati was the strategy presenter. The session was hosted by an unnamed Upsurge Club presenter on the Upsurge Club channel. Kundan also referred viewers to a podcast with Narendra Chaudhary as a source for his P&L.