Section 3 · Module 3.4
Advanced Strategies & Architecture
8 min readIron Condor — sold 23500 PE & 24500 CE (simplified)
Nifty @ ₹24,000 → P&L at expiry: +₹150
Max profit when spot stays between short strikes.
Multi-Leg Option Spreads & Hedging
Bull call spread: Buy ITM call, sell OTM call — lower premium, capped risk and reward.
Iron condor: Sell OTM put and call, buy further OTM protection — profits when index stays in a range; Theta and IV contraction help.
Algorithmic Trading Architecture
- APIs: Connect algorithms to broker execution backends.
- Co-location: Servers in NSE Mumbai data center — microsecond latency edge.
- VWAP slicing: Large orders split to minimize self-slippage.
Macroeconomic Correlations
- RBI policy: Rate hikes drag credit-sensitive sectors.
- Crude oil: Import bill widens CAD, weakens INR, pressures Nifty.
- US Dollar Index: Strong DXY pulls capital from emerging markets.
Knowledge check
Iron Condor on Nifty Friday — how should Nifty behave for max profit?