{"id":66367,"date":"2025-01-21T15:34:40","date_gmt":"2025-01-21T10:04:40","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?post_type=markets&#038;p=66367"},"modified":"2025-04-09T16:49:22","modified_gmt":"2025-04-09T11:19:22","slug":"examples-of-scalping-strategies","status":"publish","type":"markets","link":"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/examples-of-scalping-strategies\/","title":{"rendered":"Examples of Smart Scalping Strategies"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"66367\" class=\"elementor elementor-66367\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-23ba90b elementor-section-full_width tab_container elementor-section-height-default elementor-section-height-default\" data-id=\"23ba90b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container 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fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/all-about-futures\/\">All About Futures<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/types-of-futures-contract\/\">Types of Futures contract <\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/all-about-options\/\">All About Options<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/types-of-options-contract\/\">Types of Options Contract<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/smart-options-strategies\/\">Smart Option Strategies<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/smart-scalping-strategies\/\">Smart Scalping Strategies<\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/examples-of-smart-strategies\/\">Examples of Smart Strategies <\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/fno-360-an-ultimate-guide-to-futures-and-options-trading\/examples-of-scalping-strategies\/\">Examples of Smart Scalping Strategies <\/a><\/li><li><i class=\"fa fa-chevron-right\"><\/i>&nbsp;&nbsp;&nbsp;<a 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class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-90f6d06 market_content_tabs elementor-widget elementor-widget-eael-adv-tabs\" data-id=\"90f6d06\" data-element_type=\"widget\" data-widget_type=\"eael-adv-tabs.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t        <div data-scroll-on-click=\"no\" data-scroll-speed=\"300\" id=\"eael-advance-tabs-90f6d06\" class=\"eael-advance-tabs eael-tabs-horizontal eael-tab-auto-active \" data-tabid=\"90f6d06\">\n            <div class=\"eael-tabs-nav\">\n                <ul class=\"eael-tab-inline-icon\" role=\"tablist\">\n                                            <li id=\"study\" class=\"active-default eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"true\" data-tab=\"1\" role=\"tab\" tabindex=\"0\" aria-controls=\"study-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"far fa-edit\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Study<\/span>                            \n                                                    <\/li>\n                                            <li id=\"slides\" class=\" eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"2\" role=\"tab\" tabindex=\"-1\" aria-controls=\"slides-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"fas fa-book-open\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Slides<\/span>                            \n                                                    <\/li>\n                                            <li id=\"videos\" class=\" eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"3\" role=\"tab\" tabindex=\"-1\" aria-controls=\"videos-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"far fa-eye\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Videos<\/span>                            \n                                                    <\/li>\n                                    <\/ul>\n            <\/div>\n            \n            <div class=\"eael-tabs-content\">\n\t\t        \n                    <div id=\"study-tab\" class=\"clearfix eael-tab-content-item active-default\" data-title-link=\"study-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;'>\n<div id='text_slider' class='owl-carousel sa_owl_theme owl-pagination-true' data-slider-id='text_slider' style='visibility: visible;visibility:visible;'>\n<div id='text_slider_slide01' class='sa_hover_container' data-hash='Moving-Averages' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2><strong>10.1. Moving Averages<\/strong><\/h2>\r\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-70151 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average.png\" alt=\"Scalping Indicator example moving average\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Here is the moving average diagram for the hypothetical stock price trend:<\/p>\r\n<p><img decoding=\"async\" class=\"aligncenter wp-image-66199 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages.png\" alt=\"Moving Averages\" width=\"1599\" height=\"854\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages.png 1599w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-300x160.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-1024x547.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-768x410.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-1536x820.png 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-50x27.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-100x53.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-150x80.png 150w\" sizes=\"(max-width: 1599px) 100vw, 1599px\" \/><\/p>\r\n<ul>\r\n<li><strong>Blue Line<\/strong>: Represents the simulated stock price trend over time.<\/li>\r\n<li><strong>Orange Line<\/strong>: The 5-day moving average, indicating short-term price trends.<\/li>\r\n<li><strong>Green Line<\/strong>: The 20-day moving average, showing long-term price trends.<\/li>\r\n<li><strong>Red Horizontal Lines<\/strong>: Represent the breakeven points for the short strangle strategy (\u20b99,360 and \u20b910,640).<\/li>\r\n<\/ul>\r\n<p>Let&#8217;s assume a stock is trading at \u20b910,000. You decide to sell a call option with a strike price of \u20b910,500 and a put option with a strike price of \u20b99,500, both with the same expiration date.<\/p>\r\n<ol>\r\n<li>Sell a call option at \u20b910,500.<\/li>\r\n<li>Sell a put option at \u20b99,500.<\/li>\r\n<\/ol>\r\n<p>By selling these options, you collect the premiums, let&#8217;s say \u20b980 for the call and \u20b960 for the put, totalling \u20b9140.<\/p>\r\n<p><strong>Potential Outcomes:<\/strong><\/p>\r\n<ul>\r\n<li><strong>Maximum Profit<\/strong>: The maximum profit is the total premium collected, which is \u20b9140 in this case.<\/li>\r\n<li><strong>Break-even Points:<\/strong> The stock price needs to stay between \u20b99,360 (\u20b99,500 &#8211; \u20b9140) and \u20b910,640 (\u20b910,500 + \u20b9140) for you to break even.<\/li>\r\n<li><strong>Risk:<\/strong> The risk is unlimited because if the stock price moves significantly above \u20b910,640 or below \u20b99,360, you will start to incur losses<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide02' class='sa_hover_container' data-hash='Relative-Strength-Index' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2><strong>10.2. Relative Strength Index<\/strong><\/h2>\r\n<p>\u00a0 \u00a0 <img decoding=\"async\" class=\"aligncenter wp-image-70152 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index.png\" alt=\"Scalping-indicator-example-relative-strength-index\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<h3 class=\"\" data-start=\"221\" data-end=\"242\"><strong data-start=\"228\" data-end=\"241\">Objective<\/strong>:<\/h3>\r\n<p class=\"\" data-start=\"243\" data-end=\"399\">Scalp short-term Call Options or Put Options using RSI reversals on the underlying index\u00a0on a 1-minute chart.<\/p>\r\n<h3 class=\"\" data-start=\"406\" data-end=\"434\"><strong>Setup Parameters:<\/strong><\/h3>\r\n<ul>\r\n<li data-start=\"438\" data-end=\"471\"><strong data-start=\"438\" data-end=\"452\">Underlying<\/strong>: Nifty 50 (Spot)<\/li>\r\n<li data-start=\"474\" data-end=\"531\"><strong data-start=\"474\" data-end=\"495\">Option Instrument<\/strong>: At-The-Money (ATM) Weekly Option<\/li>\r\n<li data-start=\"534\" data-end=\"559\"><strong data-start=\"534\" data-end=\"547\">Timeframe<\/strong>: 1-minute<\/li>\r\n<li data-start=\"562\" data-end=\"590\"><strong data-start=\"562\" data-end=\"578\">RSI Settings<\/strong>: 7-period<\/li>\r\n<li data-start=\"593\" data-end=\"654\"><strong data-start=\"593\" data-end=\"607\">Indicators<\/strong>: RSI + Price Action + Volume (optional VWAP)<\/li>\r\n<li data-start=\"657\" data-end=\"693\"><strong data-start=\"657\" data-end=\"674\">Strategy Type<\/strong>: Intraday Scalping<\/li>\r\n<\/ul>\r\n<p class=\"\" data-start=\"727\" data-end=\"737\">Let\u2019s say:<\/p>\r\n<p data-start=\"727\" data-end=\"737\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-70057 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image.png\" alt=\"RSI Scalping payoff image\" width=\"1980\" height=\"1180\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image.png 1980w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-300x179.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-1024x610.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-768x458.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-1536x915.png 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-50x30.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-100x60.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-150x89.png 150w\" sizes=\"(max-width: 1980px) 100vw, 1980px\" \/><\/p>\r\n<p data-start=\"727\" data-end=\"737\">Here&#8217;s the payoff chart for the RSI-based options scalping strategy. It visually represents your potential outcomes: a \u20b910 profit if the trade moves in your favor quickly, or a \u20b96 loss if the setup fails and hits your stop-loss. The x-axis represents price movement over time, while the y-axis shows the payoff in rupees.<\/p>\r\n<ul>\r\n<li data-start=\"741\" data-end=\"765\">Nifty is at 22,000<\/li>\r\n<li data-start=\"768\" data-end=\"843\">RSI (7) drops to 25, then crosses back above 30 on the 1-minute chart<\/li>\r\n<li data-start=\"846\" data-end=\"890\">This is seen near a minor support zone<\/li>\r\n<li data-start=\"893\" data-end=\"944\">You scalp the 22,000 CE (Call Option) at \u20b9100<\/li>\r\n<li data-start=\"947\" data-end=\"968\">Exit target is \u20b9110<\/li>\r\n<li data-start=\"971\" data-end=\"987\">Stop-loss is \u20b994<\/li>\r\n<\/ul>\r\n<h3 class=\"\" data-start=\"994\" data-end=\"1024\">Entry &amp; Exit Rules:<\/h3>\r\n<p class=\"\" data-start=\"1028\" data-end=\"1113\"><strong>Entry:<\/strong> Buy ATM Call when RSI crosses above 30 from below (oversold bounce).<\/p>\r\n<p class=\"\" data-start=\"1116\" data-end=\"1127\"><strong>Exit:<\/strong><\/p>\r\n<ul>\r\n<li data-start=\"1132\" data-end=\"1164\">Target: \u20b910 profit (scalp)<\/li>\r\n<li data-start=\"1169\" data-end=\"1193\">Stop-loss: \u20b96 loss<\/li>\r\n<li data-start=\"1198\" data-end=\"1256\">Time-bound: Exit if trade doesn\u2019t move in 3\u20135 minutes.<\/li>\r\n<\/ul><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#text_slider').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 400,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 400,\n\t\t\tfluidSpeed : 400,\n\t\t\tautoplaySpeed : 400,\n\t\t\tnavSpeed : 400,\n\t\t\tdotsSpeed : 400,\n\t\t\tdotsEach : 1,\n\t\t\tloop : false,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : true,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#text_slider').css('visibility', 'visible');\n\t\tvar owl_goto = jQuery('#text_slider');\n\t\tjQuery('.text_slider_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 0);\n\t\t});\n\t\tjQuery('.text_slider_goto2').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 1);\n\t\t});\n\t\tvar resize_66193 = jQuery('.owl-carousel');\n\t\tresize_66193.on('initialized.owl.carousel', function(e) {\n\t\t\tif (typeof(Event) === 'function') {\n\t\t\t\twindow.dispatchEvent(new Event('resize'));\n\t\t\t} else {\n\t\t\t\tvar evt = window.document.createEvent('UIEvents');\n\t\t\t\tevt.initUIEvent('resize', true, false, window, 0);\n\t\t\t\twindow.dispatchEvent(evt);\n\t\t\t}\n\t\t});\n\t});\n<\/script>\n<\/p>                    <\/div>\n\t\t        \n                    <div id=\"slides-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"slides-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;'>\n<div id='text_slider' class='owl-carousel sa_owl_theme owl-pagination-true' data-slider-id='text_slider' style='visibility: visible;visibility:visible;'>\n<div id='text_slider_slide01' class='sa_hover_container' data-hash='Moving-Averages' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2><strong>10.1. Moving Averages<\/strong><\/h2>\r\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-70151 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average.png\" alt=\"Scalping Indicator example moving average\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Sccalping-Indicator-example-moving-average-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<p>Here is the moving average diagram for the hypothetical stock price trend:<\/p>\r\n<p><img decoding=\"async\" class=\"aligncenter wp-image-66199 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages.png\" alt=\"Moving Averages\" width=\"1599\" height=\"854\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages.png 1599w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-300x160.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-1024x547.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-768x410.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-1536x820.png 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-50x27.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-100x53.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Moving-Averages-150x80.png 150w\" sizes=\"(max-width: 1599px) 100vw, 1599px\" \/><\/p>\r\n<ul>\r\n<li><strong>Blue Line<\/strong>: Represents the simulated stock price trend over time.<\/li>\r\n<li><strong>Orange Line<\/strong>: The 5-day moving average, indicating short-term price trends.<\/li>\r\n<li><strong>Green Line<\/strong>: The 20-day moving average, showing long-term price trends.<\/li>\r\n<li><strong>Red Horizontal Lines<\/strong>: Represent the breakeven points for the short strangle strategy (\u20b99,360 and \u20b910,640).<\/li>\r\n<\/ul>\r\n<p>Let&#8217;s assume a stock is trading at \u20b910,000. You decide to sell a call option with a strike price of \u20b910,500 and a put option with a strike price of \u20b99,500, both with the same expiration date.<\/p>\r\n<ol>\r\n<li>Sell a call option at \u20b910,500.<\/li>\r\n<li>Sell a put option at \u20b99,500.<\/li>\r\n<\/ol>\r\n<p>By selling these options, you collect the premiums, let&#8217;s say \u20b980 for the call and \u20b960 for the put, totalling \u20b9140.<\/p>\r\n<p><strong>Potential Outcomes:<\/strong><\/p>\r\n<ul>\r\n<li><strong>Maximum Profit<\/strong>: The maximum profit is the total premium collected, which is \u20b9140 in this case.<\/li>\r\n<li><strong>Break-even Points:<\/strong> The stock price needs to stay between \u20b99,360 (\u20b99,500 &#8211; \u20b9140) and \u20b910,640 (\u20b910,500 + \u20b9140) for you to break even.<\/li>\r\n<li><strong>Risk:<\/strong> The risk is unlimited because if the stock price moves significantly above \u20b910,640 or below \u20b99,360, you will start to incur losses<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide02' class='sa_hover_container' data-hash='Relative-Strength-Index' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:400px; '><h2><strong>10.2. Relative Strength Index<\/strong><\/h2>\r\n<p>\u00a0 \u00a0 <img decoding=\"async\" class=\"aligncenter wp-image-70152 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index.png\" alt=\"Scalping-indicator-example-relative-strength-index\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/Scalping-indicator-example-relative-strength-index-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>&nbsp;<\/p>\r\n<h3 class=\"\" data-start=\"221\" data-end=\"242\"><strong data-start=\"228\" data-end=\"241\">Objective<\/strong>:<\/h3>\r\n<p class=\"\" data-start=\"243\" data-end=\"399\">Scalp short-term Call Options or Put Options using RSI reversals on the underlying index\u00a0on a 1-minute chart.<\/p>\r\n<h3 class=\"\" data-start=\"406\" data-end=\"434\"><strong>Setup Parameters:<\/strong><\/h3>\r\n<ul>\r\n<li data-start=\"438\" data-end=\"471\"><strong data-start=\"438\" data-end=\"452\">Underlying<\/strong>: Nifty 50 (Spot)<\/li>\r\n<li data-start=\"474\" data-end=\"531\"><strong data-start=\"474\" data-end=\"495\">Option Instrument<\/strong>: At-The-Money (ATM) Weekly Option<\/li>\r\n<li data-start=\"534\" data-end=\"559\"><strong data-start=\"534\" data-end=\"547\">Timeframe<\/strong>: 1-minute<\/li>\r\n<li data-start=\"562\" data-end=\"590\"><strong data-start=\"562\" data-end=\"578\">RSI Settings<\/strong>: 7-period<\/li>\r\n<li data-start=\"593\" data-end=\"654\"><strong data-start=\"593\" data-end=\"607\">Indicators<\/strong>: RSI + Price Action + Volume (optional VWAP)<\/li>\r\n<li data-start=\"657\" data-end=\"693\"><strong data-start=\"657\" data-end=\"674\">Strategy Type<\/strong>: Intraday Scalping<\/li>\r\n<\/ul>\r\n<p class=\"\" data-start=\"727\" data-end=\"737\">Let\u2019s say:<\/p>\r\n<p data-start=\"727\" data-end=\"737\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-70057 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image.png\" alt=\"RSI Scalping payoff image\" width=\"1980\" height=\"1180\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image.png 1980w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-300x179.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-1024x610.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-768x458.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-1536x915.png 1536w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-50x30.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-100x60.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2025\/01\/RSI-Payoff-image-150x89.png 150w\" sizes=\"(max-width: 1980px) 100vw, 1980px\" \/><\/p>\r\n<p data-start=\"727\" data-end=\"737\">Here&#8217;s the payoff chart for the RSI-based options scalping strategy. It visually represents your potential outcomes: a \u20b910 profit if the trade moves in your favor quickly, or a \u20b96 loss if the setup fails and hits your stop-loss. The x-axis represents price movement over time, while the y-axis shows the payoff in rupees.<\/p>\r\n<ul>\r\n<li data-start=\"741\" data-end=\"765\">Nifty is at 22,000<\/li>\r\n<li data-start=\"768\" data-end=\"843\">RSI (7) drops to 25, then crosses back above 30 on the 1-minute chart<\/li>\r\n<li data-start=\"846\" data-end=\"890\">This is seen near a minor support zone<\/li>\r\n<li data-start=\"893\" data-end=\"944\">You scalp the 22,000 CE (Call Option) at \u20b9100<\/li>\r\n<li data-start=\"947\" data-end=\"968\">Exit target is \u20b9110<\/li>\r\n<li data-start=\"971\" data-end=\"987\">Stop-loss is \u20b994<\/li>\r\n<\/ul>\r\n<h3 class=\"\" data-start=\"994\" data-end=\"1024\">Entry &amp; Exit Rules:<\/h3>\r\n<p class=\"\" data-start=\"1028\" data-end=\"1113\"><strong>Entry:<\/strong> Buy ATM Call when RSI crosses above 30 from below (oversold bounce).<\/p>\r\n<p class=\"\" data-start=\"1116\" data-end=\"1127\"><strong>Exit:<\/strong><\/p>\r\n<ul>\r\n<li data-start=\"1132\" data-end=\"1164\">Target: \u20b910 profit (scalp)<\/li>\r\n<li data-start=\"1169\" data-end=\"1193\">Stop-loss: \u20b96 loss<\/li>\r\n<li data-start=\"1198\" data-end=\"1256\">Time-bound: Exit if trade doesn\u2019t move in 3\u20135 minutes.<\/li>\r\n<\/ul><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#text_slider').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 400,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 400,\n\t\t\tfluidSpeed : 400,\n\t\t\tautoplaySpeed : 400,\n\t\t\tnavSpeed : 400,\n\t\t\tdotsSpeed : 400,\n\t\t\tdotsEach : 1,\n\t\t\tloop : false,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : true,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#text_slider').css('visibility', 'visible');\n\t\tvar owl_goto = jQuery('#text_slider');\n\t\tjQuery('.text_slider_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 0);\n\t\t});\n\t\tjQuery('.text_slider_goto2').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 1);\n\t\t});\n\t\tvar resize_66193 = jQuery('.owl-carousel');\n\t\tresize_66193.on('initialized.owl.carousel', function(e) {\n\t\t\tif (typeof(Event) === 'function') {\n\t\t\t\twindow.dispatchEvent(new Event('resize'));\n\t\t\t} else {\n\t\t\t\tvar evt = window.document.createEvent('UIEvents');\n\t\t\t\tevt.initUIEvent('resize', true, false, window, 0);\n\t\t\t\twindow.dispatchEvent(evt);\n\t\t\t}\n\t\t});\n\t});\n<\/script>\n<\/p>                    <\/div>\n\t\t        \n                    <div id=\"videos-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"videos-tab\">\n\t\t\t\t        <div class=\"yt_iframe\"><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/-qyxvx9gfbs?rel=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/div>                    <\/div>\n\t\t                    <\/div>\n        <\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>5paisa&#8217;s FnO 360 is an advanced derivatives trading platform designed for traders to facilitate Futures and Options (F&#038;O) 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