weekly-fno-trade-planner

Weekly F&O Trade Planner

Overview

A complete weekly trading workflow for Indian F&O markets — from macro thesis to position management. This skill identifies high-conviction directional trades by combining news analysis, sector screening, technical confirmation, and institutional flow data, then manages the position with structured stop-loss and profit-booking rules.

Designed for retail traders with limited capital who prefer option buying over selling. Supports both Groww MCP and Zerodha Kite MCP for live execution.

---

Phase 1: News & Macro Scan

Goal

Identify the dominant narrative driving markets this week.

Steps

1. Fetch breaking news and macro events:

WebSearch: "Indian stock market news this week {current_date}"
WebSearch: "global markets impact India {current_week}"
WebSearch: "RBI SEBI announcement {current_month} {current_year}"
WebSearch: "geopolitical risk India market {current_date}"

1. Categorize the macro environment:

| Category | Examples | Typical F&O Play | |----------|----------|------------------| | Geopolitical crisis | War, sanctions, oil shock | Index PUTs (Nifty/BankNifty) | | Policy event | RBI rate decision, budget, SEBI circular | Straddle/strangle before event | | Earnings season | IT/Banking results week | Stock options directional | | Global risk-off | US recession fear, China slowdown, Fed hawkish | Index PUTs, IT stock CALLs (INR weak) | | Domestic momentum | DII buying, reform news, GDP beat | Index CALLs, banking CALLs | | Sector rotation | Defence order, pharma approval, EV policy | Sector-specific stock options | | Low conviction | No clear driver, range-bound | Avoid or play iron condor |

1. Rate the macro conviction (1-5):
2. 5: Clear, strong catalyst with defined timeline (e.g., war escalation, surprise rate cut)
3. 4: Strong theme but timing uncertain
4. 3: Moderate — multiple conflicting signals
5. 2: Weak — mostly noise
6. 1: No conviction — skip the week or go very small

Rule: Only proceed to Phase 2 if conviction >= 3.

---

Phase 2: Sector & Instrument Identification

Goal

Find the ONE instrument most likely to move meaningfully this week.

Steps

1. Screen market movers and sectors:

Use whichever broker MCP is connected:

# Groww MCP
fetch_market_movers_and_trending_stocks_funds(
    discovery_filter_types=["TOP_GAINERS", "TOP_LOSERS", "VOLUME_SHOCKERS",
                           "YEARLY_HIGH", "YEARLY_LOW", "STOCKS_IN_NEWS"]
)
fetch_curated_fno(fno_filter_types=["GAINERS", "LOSERS", "TOP_TRADED"])

# Zerodha Kite MCP — use web search for movers, then:
# search_instruments(query="{sector_leader}")

1. Check institutional flows (invoke fii-dii-flow-tracker skill):
2. FII net buy/sell trend (last 5-10 days)
3. DII positioning
4. Sector-wise FII allocation shifts

1. Narrow to ONE instrument using this priority:
2. Index (Nifty/BankNifty): For macro/geopolitical/broad market themes
3. Sector ETF or index: For sector rotation themes
4. Single stock: For earnings/company-specific catalysts (must be in F&O list)

1. Validate F&O availability:

# Groww MCP
fno_mcx_contracts_search_tool(search_term="{instrument_name}")

# Zerodha Kite MCP
search_instruments(query="{instrument_name}", segment="NFO-OPT")

Selection Criteria

The ideal instrument has:

• Direct exposure to the identified macro theme
• High F&O liquidity (tight bid-ask spread)
• Clear technical setup (trending, not choppy)
• Manageable lot size for user's capital

---

Phase 3: Direction & Technical Confirmation

Goal

Determine the probable direction (bullish/bearish) with technical evidence.

Steps

1. Fetch price data (daily and hourly):

# Groww MCP
fetch_historical_candle_data(
    trading_symbol="{symbol}",
    start_time="{60_days_ago} 09:15:00",
    end_time="{today} 15:30:00",
    interval_in_minutes="1440"
)

# Zerodha Kite MCP
get_historical_data(
    instrument_token="{token}",
    from_date="{60_days_ago}",
    to_date="{today}",
    interval="day"
)

1. Run technical indicators:

# Groww MCP
get_historical_technical_indicators(
    trading_symbol="{symbol}",
    start_time="{30_days_ago} 09:15:00",
    end_time="{today} 15:30:00",
    interval_in_minutes="1440",
    indicators=["sma", "ema", "rsi", "macd", "supertrend", "bollinger", "atr", "vwap"]
)

# Zerodha Kite MCP — fetch raw candles and compute indicators manually or via yfinance

1. Identify key levels:
2. Support levels: Recent swing lows, round numbers, SMA/EMA zones
3. Resistance levels: Recent swing highs, previous breakdown points
4. Trend: Higher highs/lows (bullish) or lower highs/lows (bearish)
5. Momentum: RSI, MACD crossover direction, SuperTrend signal

1. Check Open Interest for institutional positioning:

# Groww MCP
get_open_interest_analysis(symbol="{symbol}", view="all")

# Zerodha Kite MCP — use web search for OI data from NSE

• Heavy PUT writing at a strike = institutional support floor
• Heavy CALL writing at a strike = institutional resistance ceiling
• PCR > 1.2 = market leaning bullish (hedged)
• PCR < 0.8 = market leaning bearish

1. Direction verdict:

| Signal | Bullish | Bearish | |--------|---------|---------| | Trend | Higher lows | Lower highs | | RSI | 40-60 rising | 40-60 falling | | MACD | Bullish crossover | Bearish crossover | | SuperTrend | Green/Buy | Red/Sell | | FII flows | Net buying | Net selling | | OI structure | Heavy PUT writing below | Heavy CALL writing above |

Rule: Need 4+ signals aligned for a directional trade. If mixed, skip or play non-directional.

---

Phase 4: Strategy & Entry Plan

Goal

Select the optimal option strategy and define precise entry levels.

Steps

1. Check IV environment:

# Groww MCP
get_greeks_for_fno_contract(
    search_queries=["{atm_option}"],
    expiry="{expiry_date}"
)
get_atm_straddle_chart(symbol="{symbol}")

# Zerodha Kite MCP — compute IV from option price using Black-Scholes

1. Select strategy based on conviction + IV:

| Conviction | IV Level | Direction | Strategy | |-----------|----------|-----------|----------| | High (4-5) | Low-Normal | Bullish | Buy ATM/slightly OTM CALL | | High (4-5) | Low-Normal | Bearish | Buy ATM/slightly OTM PUT | | High (4-5) | High | Bullish | Bull call spread (cap IV risk) | | High (4-5) | High | Bearish | Bear put spread (cap IV risk) | | Moderate (3) | Low | Either | Buy OTM option (cheap lottery) | | Moderate (3) | High | Either | Sell far OTM opposite side (collect premium) | | Any | Very High | Pre-event | Straddle/strangle (if event binary) |

1. Expiry selection:
2. Current week expiry: Only if entering Mon-Tue with high conviction
3. Next week expiry: Default choice — gives 7-12 days
4. Monthly expiry: For lower conviction or swing trades
5. Rule: Never buy options with < 3 days to expiry unless very high conviction

1. Strike selection:
2. ATM or 1 strike OTM: High conviction, want delta exposure
3. 2-3 strikes OTM: Moderate conviction, cheaper but needs bigger move
4. Deep OTM: Avoid (low probability, theta destroys)

1. Position sizing:

# Groww MCP
calculate_fno_margin(
    trading_symbol="{option_symbol}",
    num_lots=1,
    transaction_type="BUY",
    product="NRML"
)
get_available_margin_details()

# Zerodha Kite MCP
get_margins()

• Max risk per trade: 30-40% of capital for single directional bet
• Preferred: Split into 2-3 lots for scaling in/out
• Never: Risk more than 50% of capital on a single trade

1. Define entry plan:
2. Entry trigger: Specific price level or technical confirmation
3. Entry price range: Acceptable premium range
4. Lot allocation: How many lots at entry vs. add-on

Output: Trade Card

TRADE IDEA — Week of {date}
━━━━━━━━━━━━━━━━━━━━━━━━━━━
Thesis:     {1-line macro reason}
Instrument: {symbol}
Direction:  {BULLISH/BEARISH}
Conviction: {3/4/5 out of 5}

Strategy:   Buy {strike} {CE/PE} {expiry}
Entry:      ₹{premium} (when {underlying} at {level})
Lots:       {n} lots ({quantity} qty)
Capital:    ₹{amount} ({%} of total)

Stop-Loss:  ₹{sl_premium} ({underlying} at ~{level}) = -₹{loss}
Target 1:   ₹{t1_premium} ({underlying} at ~{level}) = +₹{profit1}
Target 2:   ₹{t2_premium} ({underlying} at ~{level}) = +₹{profit2}

Risk:Reward = 1:{ratio}
Max Loss:   ₹{max_loss} ({%} of capital)
━━━━━━━━━━━━━━━━━━━━━━━━━━━

---

Phase 4.5: Gap Probability & Immediate Entry Decision

Goal

When analysis is run DURING MARKET HOURS or AFTER MARKET CLOSE (post 3:30 PM), assess whether the next trading day is likely to see a significant gap-up or gap-down. If high probability, recommend IMMEDIATE entry before close — do NOT defer to next morning.

THIS IS THE MOST CRITICAL PHASE FOR MULTIPLIED PROFITS. Buying OTM options before a gap is 2-5x cheaper than buying after the gap opens. Missing this window is the single biggest profit killer for retail F&O traders.

When to Trigger This Phase

• Always when running the skill after 2:00 PM on a trading day
• Always when running the skill after market close (post 3:30 PM)
• Always when conviction is >= 4 and direction is clear
• Always when an active geopolitical/macro crisis is ongoing

Steps

1. Check GIFT Nifty / SGX Nifty (after hours):

WebSearch: "GIFT Nifty live today {current_date}"
WebSearch: "SGX Nifty futures {current_date} evening"

• GIFT Nifty trading > 100 pts below close = high gap-down probability
• GIFT Nifty trading > 100 pts above close = high gap-up probability

1. Check overnight global cues:

WebSearch: "US futures S&P Nasdaq live {current_date}"
WebSearch: "Asian markets Japan China {current_date} evening"
WebSearch: "crude oil price Brent live tonight {current_date}"

• US futures down > 1% = gap-down signal
• Brent crude spike > 3% overnight = strong gap-down for India
• Asian markets deep red = confirms gap-down

1. Check overnight news catalysts:

WebSearch: "{active_crisis} latest news tonight {current_date}"
WebSearch: "breaking news global markets after hours {current_date}"

• New escalation in active crisis = gap accelerator
• De-escalation / ceasefire = reverse gap

1. Calculate Gap Probability Score:

| Factor | Bearish Gap | Bullish Gap | |--------|-------------|-------------| | GIFT Nifty > 100 pts below close | +30% | — | | GIFT Nifty > 200 pts below close | +50% | — | | US futures down > 1% | +15% | — | | Brent crude up > 3% overnight | +20% | — | | Active geopolitical crisis escalating | +20% | — | | FII selling > ₹3,000 cr today | +10% | — | | GIFT Nifty > 100 pts above close | — | +30% | | GIFT Nifty > 200 pts above close | — | +50% | | US futures up > 1% | — | +15% | | Ceasefire / de-escalation news | — | +25% | | FII buying > ₹2,000 cr today | — | +10% |

Score > 60% = HIGH probability gap. RECOMMEND IMMEDIATE ENTRY.

1. Immediate Entry vs Wait Decision:

| Gap Probability | Time | Action | |----------------|------|--------| | > 60% | Before 3:15 PM | BUY NOW. Do not wait for tomorrow. | | > 60% | After 3:30 PM | Alert user: Buy at 9:15 AM tomorrow. Pre-set limit order. | | 40-60% | Any | Buy half position now, half at open | | < 40% | Any | Wait for confirmation at open |

1. Pre-Gap Strike Selection (DIFFERENT from regular entry): When buying BEFORE a gap, select strikes that are currently 2-4 strikes OTM:
2. These are cheap (₹50-150 range) = maximum leverage
3. After the gap, they become ATM or slightly OTM = premium explodes
4. Buy MORE lots of cheaper OTM options for max profit on the gap
5. This is the "lottery ticket" entry — high R:R, limited downside

Example (Bearish gap expected):

• Nifty at 23,778 → Buy 23,000 PE at ₹109 (778 pts OTM)
• Next day gap to 23,200 → 23,000 PE jumps to ₹250+ (130% overnight gain)
• 6 lots × 65 × ₹141 profit = ₹55,000 on ₹42,500 invested

1. Output: Immediate Entry Alert:

🚨 GAP ALERT — {DIRECTION} GAP EXPECTED TOMORROW
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Gap Probability: {score}%
GIFT Nifty:      {level} ({change} from close)
Key Catalyst:    {reason}

⚡ IMMEDIATE ENTRY RECOMMENDED — BUY BEFORE CLOSE
Strategy:   Buy {strike} {CE/PE} {expiry} (currently {X} pts OTM)
Premium:    ₹{cheap_price} per unit
Lots:       {max_lots} lots in ₹{budget}
Cost:       ₹{total_cost}

Expected tomorrow open: ₹{estimated_premium} (+{%} overnight)
Expected profit:        ₹{overnight_profit}

vs. buying AFTER gap:   Premium will be ₹{expensive_price}
                        You'd get {fewer_lots} lots for same ₹{budget}
                        Profit potential: {reduced}% lower

⏰ WINDOW: Buy before 3:15 PM today
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Critical Rules for Pre-Gap Entry

1. Only with conviction >= 4 — Don't gamble on uncertain gaps
2. Max 40% of capital — Even with high conviction, respect position limits
3. Always use monthly expiry for pre-gap entries — gives time if gap is delayed
4. Set SL immediately — Pre-gap entries can go wrong (gap doesn't materialize)
5. If gap doesn't happen next day — Hold if thesis is intact, exit if thesis breaks
6. Don't chase if you miss the window — Post-gap premiums are 2-3x, reduce lots

---

Phase 5: Execution

Goal

Place the trade with proper order types.

Steps

1. Verify live price before entry:

# Groww MCP
get_ltp(search_queries=["{option_symbol}"], segment="FNO", query_type="fno")
get_quotes_and_depth(search_query="{option_symbol}", segment="FNO", entity_type="fno")

# Zerodha Kite MCP
get_ltp(instruments=["NFO:{option_symbol}"])
get_quotes(instruments=["NFO:{option_symbol}"])

1. Place the order (always ask user for confirmation):

# Groww MCP
place_fno_order(
    trading_symbol="{option_symbol}",
    num_lots={n},
    transaction_type="BUY",
    order_type="LIMIT",
    price={limit_price},
    product="NRML"
)

# Zerodha Kite MCP
place_order(
    exchange="NFO",
    tradingsymbol="{option_symbol}",
    transaction_type="BUY",
    quantity={quantity},
    order_type="LIMIT",
    price={limit_price},
    product="NRML"
)

1. Set GTT stop-loss immediately after fill:

# Groww MCP
place_fno_order(
    trading_symbol="{option_symbol}",
    num_lots={n},
    transaction_type="SELL",
    order_type="LIMIT",
    price={sl_price},
    trigger_price={sl_trigger},
    smart_order_category="GTT",
    trigger_direction="DOWN",
    product="NRML"
)

# Zerodha Kite MCP
place_gtt_order(
    trigger_type="single",
    tradingsymbol="{option_symbol}",
    exchange="NFO",
    trigger_values=[{sl_trigger}],
    last_price={current_ltp},
    orders=[{
        "transaction_type": "SELL",
        "quantity": {quantity},
        "price": {sl_price},
        "order_type": "LIMIT",
        "product": "NRML"
    }]
)

1. Set GTT profit target (same pattern as above with trigger_direction="UP")

Important GTT notes:

• GTT triggers on the OPTION's LTP, not the underlying price
• Always set trigger_price slightly before the limit price (e.g., trigger at ₹95, sell at ₹90 for SL)
• On Groww: GTT may show "verification failed" — this is a known display bug, the order is active
• After exiting a position, ALWAYS cancel orphaned GTTs

---

Phase 6: Position Management (Ongoing)

Goal

Manage the position daily with structured rules for SL tightening, partial exits, and full exit.

Daily Monitoring Checklist

1. Check position P&L:

# Groww MCP
get_my_trading_positions_today()
get_specific_stock_position(trading_symbol="{option}", segment="FNO")

# Zerodha Kite MCP
get_positions()

1. Check underlying price action:

# Use either broker MCP for live price + intraday chart
get_ltp(search_queries=["{underlying}"])
fetch_historical_candle_data(
    trading_symbol="{underlying}",
    start_time="{today} 09:15:00",
    end_time="{today} 15:30:00",
    interval_in_minutes="5"
)

1. Check news for thesis changes:

WebSearch: "{macro_theme} latest news {current_date}"

1. Check institutional flows (FII/DII daily data via fii-dii-flow-tracker skill)

Stop-Loss Tightening Rules

| Premium Move | New SL Level | Logic | |-------------|-------------|-------| | Entry | -30% of premium | Initial risk limit | | +30% profit | Breakeven (entry price) | "Free trade" — can't lose | | +50% profit | Entry + 20% | Lock 20% guaranteed profit | | +100% profit | Entry + 50% | Lock 50%, let rest run | | +150%+ profit | Trail by 30% from peak | Ride the momentum |

To tighten a GTT SL:

# Groww MCP
modify_order_with_confirmation(
    groww_order_id="{gtt_order_id}",
    quantity={qty},
    segment="FNO",
    order_type="LIMIT",
    price={new_sl_price},
    trigger_price={new_trigger},
    trigger_direction="DOWN",
    order_category="GTT"
)

# Zerodha Kite MCP
modify_gtt_order(
    trigger_id={gtt_id},
    trigger_type="single",
    tradingsymbol="{option_symbol}",
    exchange="NFO",
    trigger_values=[{new_trigger}],
    last_price={current_ltp},
    orders=[{
        "transaction_type": "SELL",
        "quantity": {qty},
        "price": {new_sl_price},
        "order_type": "LIMIT",
        "product": "NRML"
    }]
)

Partial Profit Booking Rules

| Condition | Action | Remaining | |-----------|--------|-----------| | Target 1 hit (+50-80%) | Exit 40-50% of position | 50-60% as runner | | Target 2 hit (+100-150%) | Exit another 30% | 20-30% as runner | | Momentum continues | Trail SL on remaining | Let it ride | | Thesis weakens | Exit all remaining | Protect profits |

Full Exit Triggers

Exit the ENTIRE position when:

• SL hit: No questions, no hoping — exit immediately
• Thesis invalidated: Key news changes the setup (e.g., ceasefire in a war trade)
• Time decay risk: < 2 days to expiry and position is OTM
• IV crush: After a binary event, IV drops killing premium even if direction is right
• Weekend risk: For weekly expiry options, exit Friday unless very high conviction
• Overexposure: If unrealized P&L exceeds 50% of total capital, take some off

Exit Execution

# Market exit for urgency (Groww)
place_fno_order(
    trading_symbol="{option_symbol}",
    num_lots={remaining_lots},
    transaction_type="SELL",
    order_type="MARKET",
    product="NRML"
)

# Zerodha Kite
place_order(
    exchange="NFO",
    tradingsymbol="{option_symbol}",
    transaction_type="SELL",
    quantity={remaining_qty},
    order_type="MARKET",
    product="NRML"
)

# ALWAYS cancel orphaned GTTs after exit
# Groww: cancel_order_with_confirmation(groww_order_id="{gtt_id}", segment="FNO", order_category="GTT")
# Zerodha: delete_gtt_order(trigger_id={gtt_id})

---

Risk Management Rules (Non-Negotiable)

1. Max capital at risk: 40% of total capital per trade
2. Always set SL: Never hold a position without a stop-loss GTT
3. No averaging down: If SL is hit, accept the loss. Don't add to losers.
4. Weekend rule: Exit weekly expiry options before Friday close unless thesis is very strong
5. Theta awareness: Options lose ~30-50% of remaining time value over a weekend
6. IV awareness: After a big event, IV crushes. Factor this into hold decisions.
7. No revenge trading: If a trade is stopped out, wait for the next clean setup
8. Position limit: Max 2 open F&O positions at any time
9. Cancel orphaned GTTs: After every exit, clean up ALL related GTT orders
10. Journal the trade: Record entry reason, exit reason, P&L, and lessons learned

---

Weekly Schedule

| Day | Activity | |-----|----------| | Sunday evening | Phase 1-4: Full analysis, generate Trade Card | | Monday 9:00 AM | Phase 4.5: Check GIFT Nifty, assess gap probability | | Monday 9:00-9:15 | Phase 5: Execute if setup confirms (pre-open or at open) | | Mon-Thu (market hours) | Phase 6: Daily monitoring, SL tightening, partial exits | | Mon-Thu (post 3 PM) | Phase 4.5: ALWAYS check for next-day gap opportunity | | Mon-Thu (after close) | Phase 4.5: Check GIFT Nifty + overnight cues for gap alert | | Friday | Decision: Exit before weekend or hold (apply weekend rule) | | Weekend | Review, journal, prepare next week's analysis |

IMPORTANT: Evening Workflow (The Edge)

Every trading day after 2:30 PM or after market close, if an active position thesis exists or macro conviction >= 3, the skill MUST run Phase 4.5 to check for overnight gap opportunities.

The #1 profit multiplier in F&O is buying BEFORE the gap, not AFTER.

If the user invokes this skill in the evening / after hours:

1. Skip Phases 1-3 if thesis is already established
2. Go DIRECTLY to Phase 4.5 (Gap Probability)
3. If gap score > 60%, issue Immediate Entry Alert
4. NEVER say "wait for tomorrow" when gap probability is high and market is still open
5. If market is closed, alert user to set pre-market limit order or buy at 9:15 sharp

---

Tools Used

Use whichever broker MCP is connected (Groww or Zerodha Kite):

| Action | Groww MCP | Zerodha Kite MCP | Fallback | |--------|-----------|------------------|----------| | Live price | get_ltp | get_ltp | yfinance | | Market depth | get_quotes_and_depth | get_quotes | — | | Historical data | fetch_historical_candle_data | get_historical_data | yfinance | | Technical indicators | get_historical_technical_indicators | — (compute from candles) | yfinance + pandas | | Open interest | get_open_interest_analysis | — | Web search (NSE) | | Greeks/IV | get_greeks_for_fno_contract | — | Black-Scholes script | | ATM straddle | get_atm_straddle_chart | — | Manual calculation | | Margin check | calculate_fno_margin | get_margins | — | | F&O search | fno_mcx_contracts_search_tool | search_instruments | — | | Place order | place_fno_order | place_order | — | | GTT orders | place_fno_order (GTT) | place_gtt_order | — | | Modify GTT | modify_order_with_confirmation | modify_gtt_order | — | | Cancel GTT | cancel_order_with_confirmation | delete_gtt_order | — | | Positions | get_my_trading_positions_today | get_positions | — | | Portfolio | get_equity_portfolio_holdings | get_holdings | — | | Market movers | fetch_market_movers_and_trending_stocks_funds | — | Web search | | F&O movers | fetch_curated_fno | — | Web search | | Trading calendar | resolve_market_time_and_calendar | — | Web search | | Screener | fetch_technical_screener | — | Web search | | News | WebSearch | WebSearch | WebSearch | | FII/DII flows | fii-dii-flow-tracker skill | fii-dii-flow-tracker skill | Web search | | Calculator | calculator | — | Python |

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Disclaimer

This skill provides analysis and trade suggestions based on publicly available data and technical/fundamental indicators. It is NOT financial advice. All F&O trading involves significant risk of loss. Users must make their own investment decisions and are responsible for their own trades. Past patterns do not guarantee future results.