**Strangle Flux** is an overnight short strangle strategy that trades NIFTY options between 10:15 AM and 2:00 PM. Unlike a straddle, it sells a call and a put at strike prices 100 points away from the current market price — creating a wider range for profit. The strategy enters trades only when two volatility-based signals (`alpha` and `alpha2`) cross high thresholds, indicating a likely drop in implied volatility. These signals analyze the relationship between volatility changes, skew, and spot movement to identify favorable market conditions.
The strategy focuses on safety and precision. It uses real-time 1-minute data, avoids stale information, and includes strict checks before placing trades — such as ensuring margin availability and verifying there's no active trade already. It also has a 2% capital-based stop loss to limit risk. On expiry days, it automatically switches to next week's options. By trading OTM options and betting on volatility cooling off, Strangle Flux aims to capture stable profits within a broader range, making it a cautious alternative to tighter setups like a straddle.