Nifty & Bank Nifty Weekly Expiry Options Strategy For 16th Jan Exp

Nifty & Bank Nifty Weekly Expiry Options strategy for 16th Jan Exp

Hello guys. I hope you all are doing good. Here I’m back with my weekly post where I’m trying to share what levels we can expect along with Nifty & Bank Nifty weekly expiry options strategy for the coming week.

This week we saw huge volatility in the market due to US-Iran tension. High volatility brings new opportunities but high risk too. HIgh Opportunities like, When IV is high, you will get a good premium in your credit spreads.

But you have to be more cautious in terms of risk because you may get a good movement in either direction due to high Volatility and if you have a strategy with unlimited risk, it may create a huge problem is there is any gap-up or gap-down in market.

Nifty weekly expiry analysis with options strategy

Nifty weekly analysis

On Monday we saw a sharp decline in Nifty due to global tension between the US and Iran. Later on Wednesday, we saw a sharp recovery from lower levels after a gap down opening.

On Friday Nifty made a new all-time high which indicates that the market is in the complete grip of bulls. The important thing here we need to keep in mind that all sectors are participating in this rally. Especially the mid-cap and small-cap sectors.

Now 12400, 12700 and 13200 are the upside levels which we can track as short term targets in Nifty. On downside 11800 is an important and strong support level which you can use as a stop loss.

Nifty Options Chain analysis

Nifty Options Chain analysis

Based on option chain data, the highest Open interest stands at 12300 CE & 12200 PE, followed by 12400 CE & 12000 PE. PCR of all strikes is 1.68, which indicates an overbought market. PCR at 12200 stands at 2.28, which is acting as an immediate support level.

The Put-call ratio at 12400 stands at 0.12, which is acting as a resistance level. Equally, important indicator Option Pain is at 12250, indicating weekly expiry at 12250. A shift in option pain will provide further levels.

Significant open interest buildup on PUT sides, Especially 12200 PE, 12250 PE & 12300 PE, which indicates that the market is facing strong support from the lower side. Based on Option chain data, 12200, 12100 are good support levels & 12300 & 12400 are good resistance levels for this expiry.

Keep tracking open interest to analyze market participants’ behavior. If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.

Nifty Weekly Expiry Options Strategy: Iron Condor

Nifty Weekly Expiry Options Strategy

Possible adjustments:

If you find that Nifty is giving a breakdown and sustaining below 12175, then square off 12350 CE & 12500 CE in profit, and short 12250 CE and 12400 CE.

The same thing you can do with put spread means if you got a breakout from 12425. You can shift your put spread to 100 points up.

If you want to learn these strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program.

Bank Nifty Weekly expiry analysis with options strategy

Bank nifty chart today

We saw a sharp decline in Bank Nifty on Monday due to global tension. On Wednesday, after opened the gap-down, We saw a good recovery in bank nifty from lower levels.

As I shared in the last bank nifty weekly expiry options strategy post, that 31000 is a very strong support level. The same thing we saw on Wednesday, Bank Nifty took support around 31000 and reverted back to its previous levels.

The overall trend is UP and the index looks completely in the grip of bulls. In this type of market where there is no sign of weakness, Every dip should be our BUY opportunity.

Above 32600 a new BUY signal will trigger and we can keep 31000 as our stop-loss for a long trade in Bank Nifty.

Bank Nifty option chain analysis

Bank Nifty weekly expiry options chain

Based on option chain data, the highest Open interest stands at 32500 CE & 32000 PE, followed by 33000 CE & 31500 PE. PCR of all strikes is 1.18, which indicates a neutral market. PCR at 32000 stands at 3.31, which is acting as an immediate support level.

The Put-call ratio at 32500 stands at 0.14, which is acting as a resistance level. Equally, important indicator Option Pain is at 32200, indicating weekly expiry at 32200. A shift in option pain will provide further levels.

If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.

Bank Nifty Weekly Expiry Options Strategy: Iron Condor

Bank Nifty Weekly Expiry Options Strategy

Possible adjustments:

If you find that BankNifty gives a breakdown and sustaining below 31800, then Shift your Call spread to 200 points down.

The same thing you can do with put spread means if you got a breakout from 32600. You can shift your put spread to 200 points up.

If you want to learn these strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program.

Much Check this alsoBest Option strategy for a sideways movement in PNBA high probability option strategy in NIITTECH,  Modified Condor Option Strategy in VEDLBull Call Ladder in ZEEL,  Iron Condor in SBINWeekly Analysis & Option Strategies For 21st Nov Exp, Why People Lose Money & Nifty and Bank nifty index analysis with Option Strategy A high probability options strategy in YESBANKBull Call ladder strategy in ITC for OCT Expiry

Post your comments in the comment box if you have a query related to the Weekly option strategy. You can ask any question related to options trading in the comment box.

If you need More real-time assistance on Nifty and Banknifty weekly options strategy Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on these weekly options strategies. You can contact us on WhatsApp.


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DISCLAIMER: – we are not a SEBI research analyst. Views posted here only for educational purposes. There is no liability whatsoever for any loss arising from the use of this product or its contents. This product is not a recommendation to buy or sell, but rather a guideline to interpreting specified analysis methods.  This information should only be used by investors and traders who are aware of the risk inherent in securities trading.

Replete Weekly Analysis

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