Lemonn Launches Underlying TP/SL for Index Options

Lemonn launches Underlying TP/SL, a new feature that lets traders set their Take Profit (TP) and Stop Loss (SL) using Nifty and Sensex index levels instead of option premiums. If you analyse the underlying index before entering a trade, you can now manage your exits the same way.

For many index option traders, this removes the disconnect between market analysis and trade execution. Rather than relying on option premiums that change with volatility and time decay, Underlying TP/SL follows the movement of the underlying index.

What Is Underlying TP/SL?

Underlying TP/SL is a new risk management feature in the Lemonn app that allows traders to define their exit levels based on the movement of the underlying index.

Instead of setting your target like this:

Exit when my option premium reaches ₹180.

You can now set it like this:

Exit when Nifty reaches 25,100.

The same applies to your stop loss. Once the underlying index reaches your chosen level, your trade exits according to your configured TP or SL.

Why Lemonn Launches Underlying TP/SL

Most traders make decisions by watching the Nifty or Sensex chart, not the option premium.

They identify:

• Support and resistance
• Breakout levels
• Trend reversals
• Key price zones

However, once they enter an options trade, they usually have to set TP and SL using the option premium.

This creates a mismatch because option premiums are influenced by several factors beyond the index movement, including:

• Implied volatility (IV)
• Time decay (Theta)
• Time remaining until expiry
• Changes in market demand

As a result, the index may reach your target while the option premium behaves differently.

By launching Underlying TP/SL, Lemonn enables traders to manage exits using the same market view that guided their entry.

How Underlying TP/SL Works

The feature continuously monitors the movement of the underlying index.

When the selected Nifty or Sensex level is reached, your configured TP or SL is triggered.

This means your exit is tied to the index movement rather than changes in option pricing.

How to Use Underlying TP/SL in Lemonn

Method 1: From Scalper Pro

1. Open the FnO section.
2. Launch Scalper Pro.
3. Select your preferred options contract.
4. Place your trade.
5. On the Underlying Chart, tap TP/SL.
6. Enter your target and stop loss using index levels.
7. Confirm your settings.

Once enabled, your TP and SL will follow the underlying index.

Method 2: From the Order Pad

You can also configure Underlying TP/SL before placing your order.

1. Open the Option Chain.
2. Select an options contract.
3. Open the order pad.
4. Tap TP/SL.
5. Enable Underlying TP/SL.
6. Enter your preferred index levels.
7. Place the order.

Your Underlying TP/SL settings will also appear inside Scalper Pro after the trade is placed.

One Important Rule

A trade can only use one TP/SL method at a time.

If Underlying TP/SL is active, you cannot simultaneously use premium-based TP/SL for the same position.

This ensures there is only one exit logic managing your trade.

Benefits of Lemonn Underlying TP/SL

The feature is designed to make option trading more intuitive for traders who think in terms of index movement.

Some key benefits include:

• Set TP and SL using Nifty or Sensex levels
• Align exits with your market analysis
• Reduce dependence on changing option premiums
• Avoid confusion caused by volatility and time decay
• Simplify trade management during fast-moving markets

Underlying TP/SL vs Premium-Based TP/SL

Feature	Underlying TP/SL	Premium TP/SL
Exit based on	Underlying index	Option premium
Affected by implied volatility	No	Yes
Affected by time decay	No	Yes
Best suited for	Index-based trading	Premium-based strategies
Primary reference	Nifty or Sensex	Option price

Who Should Use Underlying TP/SL?

This feature is particularly useful for:

• Intraday option traders
• Scalpers
• Price action traders
• Breakout traders
• Traders who analyse Nifty or Sensex charts before entering positions

If your trading decisions start with the index chart, Underlying TP/SL helps your exit strategy follow the same logic.

Why This Feature Matters

Index traders often think in points.

For example:

• Buy above resistance
• Exit near the next resistance
• Place the stop below support

With traditional TP and SL, traders have to convert those ideas into option premium values, which may not move exactly as expected.

Lemonn launches Underlying TP/SL to remove that extra step and make risk management more intuitive.

Conclusion

With the launch of Underlying TP/SL, Lemonn gives index option traders a simpler way to manage exits.

Instead of tracking changing option premiums, traders can now define Take Profit and Stop Loss based on the movement of the underlying index. This creates a more consistent trading experience for anyone who analyses Nifty or Sensex charts before placing an options trade.

If your strategy begins with the index, your TP and SL can now follow the same approach.

Frequently Asked Questions

Key Takeaways

• Lemonn launches Underlying TP/SL for Nifty and Sensex options.
• Traders can set TP and SL using index levels instead of option premiums.
• The feature aligns trade exits with index-based market analysis.
• It is available from both Scalper Pro and the order pad.
• Only one TP/SL method can be active on a trade at any given time.