Sensex Intraday Algo Trading Strategy - 0 DTE & 2 DTE Option Selling

Discover a rule-based Sensex intraday option selling strategy. Sell OTM Call and Put options at 9:20 AM with 50% stop-loss, exiting at 3:25 PM. Works for 0 DTE

Published · Updated · Methodology: Technical Indicators

Part of: Algorithmic & Automated Trading

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Intraday
  • Markets: Sensex Options

Source video

Decoded from: Sensex Intraday Algo Trading Strategy | 0 DTE & 2 DTE Option Selling Strategy by AlgoTest — watch the original

Key timestamps:

  • 0:36 - Strategy Rules
  • 0:46 - Entry Time
  • 0:50 - Exit Time
  • 1:00 - Option Selection (OTM 3)
  • 1:18 - Stop Loss (50%)
  • 3:43 - DTE Explained
  • 5:12 - Combining 0 DTE and 2 DTE
  • 6:22 - Max Drawdown and Expectancy
  • 7:08 - Impact of News

Strategy overview

Selling short-dated index options is a trade on time and range rather than on direction: the seller collects premium and needs price to stay inside a band until the exit. What this entry actually specifies, though, is not a signal but a schedule. The source video's chapter list runs entry time, exit time, strike selection and a stop rule inside its first ninety seconds — the shape of a setup whose decisions are all made before the session opens rather than in response to what price does during it. There is no indicator to cross and no pattern to recognize; the "algo" in the title refers to executing a fixed timetable, not to forecasting.

The variable carrying the most weight is the one in the subtitle: 0 DTE versus 2 DTE. Same index, same clock, same strike logic — and yet these are less two settings of one strategy than two different risk objects. A position opened on expiry day lives entirely inside the window where an option's remaining value decays fastest and its sensitivity to movement rises hardest; two days out, decay is slower and the same move costs less. That the video gives DTE its own chapter, after the rules rather than before them, suggests the author treats it as the piece a viewer is most likely to get wrong. The Sensex framing narrows things further: which weekday counts as 0 DTE is fixed by an exchange calendar, not by the market, so the timing of this setup rests on a rulebook that can be revised — a dependency worth checking before assuming the schedule still means what it meant when the video was recorded.

Two structural points are worth stating plainly. Premium selling is a short-convexity position — the gain is capped at the credit received while the adverse side is not — which is why a stop rule needs a chapter of its own, and why the useful question about any strategy in this family concerns its worst session rather than its typical one. And nothing was extracted for this entry: the record carries the generic "Technical Indicators" methodology with an empty indicator list and "Intraday" as its only timeframe, which is an honest description of a strategy built from a clock and a contract rule with no indicator to name. The chaptered source video remains the reference for the specific values.

Topics

sensex options · intraday strategy · option selling strategy · 0 dte strategy · 2 dte options · algo trading strategy · technical indicators · tradingview strategy · short strangle strategy · weekly options · otm options · pine script · trading strategy

Frequently asked questions

What do 0 DTE and 2 DTE mean in option selling?

DTE stands for days to expiry. A 0 DTE trade is opened on the contract's expiry day itself; a 2 DTE trade is opened two days before expiry. Since both are closed intraday here, DTE describes which expiry the sold contract belongs to, not how long the position is held.

Why does the same option-selling setup behave differently at 0 DTE than at 2 DTE?

Because an option's remaining value decays faster and its sensitivity to price movement grows sharper as expiry approaches. On expiry day both effects are at their most extreme, so an identical entry time, strike offset and stop rule produce a materially different risk profile from the same rules applied two days out.

Is a Sensex intraday option-selling strategy indicator-based?

Not in this case. This entry is catalogued under the generic Technical Indicators methodology with an empty indicator list, which reflects what it is: a timetable plus a contract-selection and stop rule. The decisions are scheduled rather than triggered by an indicator reading.

What should I check before testing a short-DTE option-selling strategy?

Whether your data and testing setup can represent the things this trade structure depends on — the correct expiry calendar, option-chain granularity at the chosen strike offset, bid-ask spreads near expiry, and how a stop is assumed to fill on a fast move. Strategy Decoder catalogs strategies like this one from video sources; for this entry no rules were extracted, so the source video is the reference for its specifics.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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