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. It is 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
DeltaK reads Aegis/Zenith wall migration and RRG rotation live across NIFTY, BANKNIFTY, FINNIFTY and MIDCPNIFTY. Sign in and watch it work in Paper mode.