💰 Cash Generation Model (Options Selling)

  • Initial Capital: ₹7 Lakh for cash generation
  • Method: Option selling strictly based on Greeks
  • Target Takeaway: 5% – 6% on invested capital
  • ₹7 Lakh Cash Gen: ₹49,000
  • ₹28 Lakh Cash Gen: ₹2 Lakh
  • Pledging Stop: Post June 2027 (first birthday)
  • Collateral Rule: Cash generation only via available collateral
  • ₹35 Lakh investment with 20% haircut gives ₹28 Lakh collateral to generate ₹2 Lakh per month

🧾 Final “GO / NO-GO” Checklist (As per Greeks)

Greeks Lab

✅ Iron Condor GO Checklist

Trade only if ALL conditions met:

  • POP ≥ 65%
  • Short strike delta between 0.18 – 0.22
  • Portfolio Delta between -20 to +20
  • Portfolio Theta ≥ 20
  • Portfolio Gamma low (ideally < 1)
  • Portfolio Vega negative
  • IV Percentile < 90 (reduce position size if higher)
  • Credit ≥ 30% of spread width
  • Price between short strikes (not wings)

⚠️ Iron Condor ADJUST Checklist

Adjust if ANY condition appears:

  • Short strike delta ≥ 0.33
  • Delta imbalance greater than 3×
  • Price within one spread of short strike
  • Loss reaches 75% of credit received
  • IV expanding rapidly

🚪 Iron Condor EXIT Checklist

Exit if ANY condition occurs:

  • 50–60% profit reached
  • Risk increasing (Gamma rising or Delta drifting)
  • Days to expiry below 5–7 (last week risk)

⚠️ Iron Fly — Allowed Only If

  • Delta between -10 to +10
  • Theta ≥ 60
  • Gamma < 3
  • Strongly negative Vega
  • Price very close to ATM
  • Ability to monitor / adjust

Execution Prompt

Act as a professional options risk manager and analyse this option chain using my saved options selling framework. Follow these rules strictly: Iron Condor entry rules: • Short strike delta between 0.18–0.22 • Portfolio delta between −20 to +20 • Theta ≥ 20 • Gamma low • Vega negative • POP ≥ 65% preferred • Credit ≥ 30% of spread width • Wing width ≈ 1.2–1.5× expected move • IV percentile consideration (reduce size if >90) Structure rules: • Identify whether condor is neutral or directional • If directional, justify using probability/Greeks Iron Fly comparison: Check if Iron Fly is superior using: • Delta −10 to +10 • Theta ≥60 • Gamma <3 • Strong negative Vega Risk evaluation: Provide: • Probability of profit assessment • Break-even levels • Risk reward quality • Margin efficiency Adjustment planning (very important): Identify: • Delta danger levels (0.30 and 0.35 triggers) • Price levels requiring adjustment • When rolling is better • When fly conversion is better • When averaging is allowed Decision output format: Give final verdict: Trade Quality: (A grade / B grade / C grade / Reject) Suggested structure: • Sell strikes: • Buy wings: Greeks assessment: • Portfolio Delta: • Theta: • Gamma: • Vega: Probability assessment: Risk type: (Conservative / Standard / Aggressive) Adjustment triggers: Best alternative (if current structure not optimal): Most important risk: Final decision: Trade / Avoid / Wait Reject any trade that violates my Greeks rules.

Adjustment Prompt (Old)

Spot price = ___ Short CE delta = ___ Short PE delta = ___ Delta imbalance = ___ IV percentile = ___ Current P/L = ___ Initial credit = ___ Distance to short strike = ___ Check if adjustment is needed based on my Iron Condor adjustment rules and which adjustment type applies.

Pledging Rules

  • Keep pledging until cash generation reaches ₹2 Lakh per month
  • If ₹2 Lakh per month is achieved with ₹35 Lakh investment:
    • Stop pledging
    • Focus only on compounding via diversification calculator
  • Do not generate cash above ₹2 Lakh from option selling
  • Additional cash generation to be routed via InvIT

Philosophy: Cash generation is capped, controlled, and rule-based.

📅 Monthly Investment Plan

  • Start Date: From 1 March onwards
  • Monthly Deployment: Buy distributed investments of approximately ₹2 Lakh + cash generation amount
    • NIFTY BEES – 30%
    • MID – 30%
    • JUNIOR – 20%
    • INVIT – 10%
    • REIT – 10%
  • Diversification calculator

Philosophy: Cash flow first, compounding second.

🏗️ InvIT – Passive Income Rules

  • Passive Income Vehicle: InvIT (PowerGrid)
  • Passive Income Target: ₹2 Lakh

InvIT Compounding Conditions

  • Stop InvIT compounding if price is greater than 105
  • Also stop if dividend income reaches ₹2 Lakh. Target is to reach ₹2 Lakh per month.
    Philosophy: Income discipline matters more than price excitement.

    Notes:

  • 1⃣ Options: Stop pledging once cumulative cash generated reaches ₹2 lakh. Thereafter, investments in BEES will continue solely for compounding purposes. Options selling will be carried out only with limited capital.
  • 2⃣ BEES (Equity ETFs): Stop fresh investments once ₹25L total is invested across all NIFTYBEES + MID150BEES + JUNIORBEES; let them compound on their own.
  • 3⃣ InvIT → Next: Invest in InvITs until ₹2L/month distributions are reached; then stop InvITs and shift new capital to REITs & metals.
  • 4⃣ Adjustment Rules for Iron Condor: If stock falls then convert to bull put spread, if stock rises then exit with loss.