9:20 Strategy with LTP Calculator
The morning session in the stock market is usually the most volatile. During this period, institutional investors and professional traders build their positions. The 9:20 Strategy of the LTP Calculator is designed to capture and benefit from these movements.
When to Start
After 9:21 AM, click on the 9:20 button in the LTP Calculator. Four lines will appear in the following order from top to bottom:
EOR+1
EOR
EOS
EOS-1
Mandatory Condition
If at 9:21 AM one or both lines on any side are missing, then no trade should be taken on that side.
For example:
If EOR or EOR+1 is missing, there will be no Put buying on that day.
If EOS or EOS-1 is missing, there will be no Call buying on that day.
And if lines are missing on either side, the Writing Strategy will also not be executed that day.
Buying Strategy
EOS and EOS-1 (Call Buying)
Risky Traders:
Buy CE at EOS. Click on Set D to get D1, D2, and D3 Call targets. If the market goes up, exit at the chosen target. If the market goes down to EOS-1, average with a double lot at EOS-1, click Set D again. The common target will now be D1 Call, and the Stop Loss will be D1 Put.
Moderate Traders:
Skip EOS and wait for the market to reach EOS-1. Buy CE at EOS-1, click Set D, and take D1 Call as the target and D1 Put as the Stop Loss.
EOR and EOR+1 (Put Buying)
Risky Traders:
Buy PE at EOR. Click on Set D to get D1, D2, and D3 Put targets. If the market goes down, exit at the chosen target. If the market goes up to EOR+1, average with a double lot at EOR+1, click Set D again. The common target will now be D1 Put, and the Stop Loss will be D1 Call.
Moderate Traders:
Skip EOR and wait for the market to reach EOR+1. Buy PE at EOR+1, click Set D, and take D1 Put as the target and D1 Call as the Stop Loss.
Writing Strategy
The Writing Strategy is applied only if all four lines are visible at 9:21 AM.
Write a Call with strike price higher than EOR+1.
Write a Put with strike price lower than EOS-1.
Stop Loss will be equal to the combined premium of both legs. If one side hits that level, square off that side and hold the other side until 2:30 PM. Final exit is at 2:30 PM.
Disclaimer
This blog is for educational purposes only and not investment advice; please consult your SEBI-registered adviser before trading.
