Zero-OTM Rule
DeltaK's constraint that long entries are restricted to the 2nd or 3rd deepest in-the-money strike — never ATM, never OTM.
The rule trades away the cheaper premium of an ATM or OTM strike for the slower time decay and higher delta of a strike that's already meaningfully in-the-money — a deliberate bias toward strikes that behave more like the underlying and less like a fast-decaying lottery ticket. It's a hard gate: a candidate that fails it doesn't get sized down, it doesn't get taken at all.
Example: with NIFTY at 25,000, the rule permits a long entry at 24,900 or 24,850 (the 2nd and 3rd ITM strikes) — never at 25,000 itself (ATM) and never at 25,050 (OTM), deliberately giving up the cheaper premium of those strikes for slower decay and a delta that tracks spot more closely.
Related terms
See it read live, not just diagrammed
Quantum Horizon reads Aegis/Zenith wall migration and RRG rotation live across NIFTY, BANKNIFTY, FINNIFTY and MIDCPNIFTY — sign in and watch it work in Paper mode.