1. Iron Condor (Low Volatility Strategy)

• Involves selling an out-of-the-money (OTM) put spread and an OTM call spread.
• You profit if the stock/index remains between two strike prices.
• Limited profit (premium received), limited loss (difference between strikes minus premium).

📌 Best for: Markets with low volatility expectations.

Payoff Graph:
🟢 Max profit occurs when the stock stays between the short put and short call.
🔴 Max loss occurs if the stock moves beyond the long call or long put.

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2. Short Straddle (High-Risk, High-Reward)

• Sell ATM call and put options with the same strike price.
• Profitable if the market doesn’t move much.
• Unlimited risk if the stock moves significantly.

📌 Best for: Low-volatility stocks with stable price movement.

Payoff Graph:
🟢 Profit is highest when the stock remains at the strike price.
🔴 If the price moves sharply, losses can be unlimited.

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3. Short Strangle (Wider Range, Lower Profit)

• Similar to a straddle, but options are sold at different strike prices (call is OTM, put is OTM).
• Higher probability of profit but lower premium compared to a straddle.
• Risk is still high if a breakout occurs.

📌 Best for: Slightly wider range-bound stocks.

Payoff Graph:
🟢 Profit occurs when the stock remains within the range of strikes.
🔴 Losses occur when price moves beyond the sold options.

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4. Butterfly Spread (Low-Risk, Limited Reward)

• Involves buying one ITM option, selling two ATM options, and buying one OTM option (can be done with calls or puts).
• Very low-cost strategy, profits if the stock remains near ATM strike.
• Loss is minimal if the stock moves too much.

📌 Best for: Stocks expected to stay near a strike price.

Payoff Graph:
🟢 Peak profit at the ATM strike.
🔴 Small loss if price moves too much.

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5. Mean Reversion Trading (Using Support & Resistance)

• Identify support and resistance levels based on historical prices.
• Buy near support, sell near resistance.
• Works best in range-bound markets.

📌 Best for: Stocks stuck in a horizontal range.

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6. Pairs Trading (Hedging Risk with Correlated Stocks)

• Select two correlated stocks (e.g., HDFC Bank & ICICI Bank).
• Buy the underperforming stock, short the outperforming stock.
• Profit from their price convergence.

📌 Best for: Stocks with strong historical correlation.

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7. Scalping (Quick Profits on Small Moves)

• Use short timeframes (1–5 minutes) to trade small price fluctuations.
• Requires tight stop-losses and fast execution.

📌 Best for: Traders who can monitor markets actively.