Sell Options After 12:30 PM? Use This “Theta Killer” Setup!Hello Traders!
We all know that time decay (Theta) accelerates in the second half of the trading day — especially post 12:30 PM. But most traders either miss this golden window or use the wrong strategy. Today, I’m sharing my favorite “Theta Killer” Setup to sell options with high confidence after 12:30 PM , using pure logic, structure, and risk control.
Why Post 12:30 PM is a Sweet Spot for Option Sellers
Theta Decay Accelerates: Option premiums melt faster in the 2nd half, especially on expiry week.
Market Direction is Often Clear: By now, breakouts have happened or ranges are set.
Low Volatility = Premium Traps: Perfect time to eat theta with minimal risk.
The “Theta Killer” Strategy – Step by Step
Step 1 – Identify a Stable Range or Confirmed Trend
→ If market is sideways, look for VWAP + CPR compression .
→ If trending, identify break-retest zones.
Step 2 – Check OI Data & VIX
→ Low VIX (<14) + OI buildup on both CE & PE sides = perfect theta trap.
Step 3 – Deploy Short Straddle or Strangle
→ Choose ATM (Straddle) or OTM (Strangle) strikes with high OI and low IV.
→ Make sure the range is unlikely to break in the last 2 hours.
Step 4 – Exit Rules
→ Exit by 3:10 PM or when you hit 60–70% profit
→ SL = 30% of combined premium or breakout of your defined range.
Bonus Tip – Hedge If Needed
Buy deep OTM CE & PE as insurance
Adjust position into Iron Fly if market starts compressing further
Rahul’s Tip
“Selling options post 12:30 isn’t about volume — it’s about timing decay.” Let the market do nothing… and you profit from it!
Conclusion
This “Theta Killer” post-lunch strategy is ideal for traders who want low-risk, time-decay-focused profits . It’s not about prediction — it’s about structure, timing, and letting Theta do the work.
Have you tried trading after 12:30 PM? What’s your go-to setup? Drop your style in the comments!
Shortstraddle
Sideways movement in NIfty Now the Nifty Index is in consolidation mode after a strong bull run. Lucky for Option sellers indeed. ( Monthly Contracts)
1) We can execute Short Straddle near the All time High resistance or near to the immediate support at 17100 to 17000 (as per OI). Risky traders can go for Positional option buying (considering theta decay).
2)As its moving in a short range (350 points), it also a good option to use Short Strangle.
I would personally prefer the 1 st method, because there are chances that Support and Resistance levels get Breached.
Please share your valuable feedback
Disclaimer: Kindly do your own analysis and consult your advisor before taking any trade. This view is for educational purposes only.
NIFTY | Weekly expiry discussion | Short straddle / Iron FlyNIFTY | Weekly expiry discussion | Short straddle / Iron Fly
Quick fall and sharp recovery immediately, expecting some consolidation in this zone like it happened previously.
Can create a dynamic range bound statergy for tomorrow's expiry - limited risk. If market moves violantly we can do adjustment trade by going market direction and come out with no loss or with minimum profit.
CMP : 13520
Sell 13500 CE @ 82
Sell 13500 PE @ 59
Buy 13700 CE @ 9
Buy 13300 PE @ 15
Max Profit : 8558
Max Loss : 6368
Margin required : 60000/-
Just one day trade.
NIFTY | RSI mild negative divergence | Sideways?NIFTY | RSI mild negative divergence | Doesn't looks bullish not a great time to short too. Expecting some range bound this week.
Lets try Short straddle with hedge it becomes Iron Fly - 17/12/2020 Expiry - Credit Statergy - Defined and good risk reward
CMP : 13513
Sell 13500 PE @ 101
Sell 13500 CE @ 108
Buy 13300 PE @ 37
Buy 13700 CE @ 36
Premium collecting : Rs.209/-
Insurance : 73/-
Max Loss : Rs.4815/-
Max Profit : Rs.10110/-
1) No adjustment required if ready to accept this small loss of 4815/-
2) Margin required approx 62000/-
3) While exiting in between should exit from all the positions
Banknifty MAY expiry betExpecting banknifty to stay within the channel.
Trade 1: Short Straddle - Medium Risk
SELL 19000CE: 64.6 * 20 = 1292
SELL 16000PE: 47.3 * 20 = 946
Total profit = 2238 Rupees
Trade 2: Iron Condor - Ultra low Risk
SELL 16000PE: 47.3
BUY 15900PE: 41.45
SELL 19000CE: 64.6
BUY 19100CE: 55.85
Total Profit = 64.6 + 47.3 - 41.45 - 55.85 = 292 Rupees