Finally, A highly volatile week has ended on a big negative note. In my last Bank Nifty weekly analysis and options strategy post, I told that successful trading is all about Risk Management.
Those who are following they can survive here. And if you manage to survive, profit will come automatically.
People are working on how to make a profit but I’m saying we should follow, How to stop losing? Because if you can limit your loss that means you are increasing your probability to make a profit.
Stock trading is all about probability. At every level, we have a 50% probability to go in the right direction. Either market will go up or it will go down. The only market knows what will happen in the next moment.
Believe me guys, in my 8+ years trading career, I have tried so many things and placed enough traders in the live market and came to the conclusion that profit is not in our hands. Only the market knows what will come next.
So when profit is not in our hands, which is that thing that is in our hands? “Our loss” or can say our risk. In every trade, we are not sure that our target will come, but our stop-loss will hit that is 100% sure.
So before entre in a trade, I always ask myself that my loss in this trade is let’s say 4000₹ and Can I afford to lose that money? If my answer is “Yes” then only I will entre in that trade otherwise I will optimize my position with that much of risk which I can afford to lose.
It helps me to make better decisions in the next trade. Because Share trading is all about doing the same thing again and again. So every trade we are taking must be free from emotions.
It’s our job to keep our emotions out of our trading activities. If you can manage yourself to do this job perfectly, believe me, next time is yours.
- 1 Nifty Weekly analysis with Options strategy
- 2 Option Strategies
- 3 Bank Nifty Weekly Analysis with options strategy
- 4 Options Strategies – A Mentorship Program
- 5 Looking for the Best strategy for Bank Nifty Future?
Nifty Weekly analysis with Options strategy
In my last article, I shared that 11300 – 11000 should be the range for this week. On Friday, we saw a Gap-down opening in Nifty below 11000, made a low of 10827.40 and closed at 10989.45.
Although in the second half nifty tried to recover something but couldn’t succeed to close above 11000. Now 11000 which was support previously, is acting as a strong resistance.
A Mentorship Program
Now, Monday is the day when we will get a clear idea for further levels. If Nifty manages to sustain below 11000 in the next 2 trading sessions, that means we may see some new downside levels in the coming week,
One thing we should keep in mind that, this downside is not just because of our domestic issues. it’s global downfall due to the current coronavirus issue.
FIIs are selling huge every day. No support from any side. One more thing we should keep in mind that valuation is very high and this correction will be very healthy in terms of the valuation and will open some new doors for value buying.
So keep tracking some valuable stocks and invest in every dip for medium to long terms portfolios.
Nifty weekly Options Chain analysis
Based on option chain data, the highest Open interest stands at 11500 CE & 10500 PE, followed by 11300 CE & 10000 PE. PCR of all strikes is 0.81, which indicates a neutral market. PCR at 10800 stands at 7.67, which is acting as an immediate support level.
The Put-call ratio at 11200 stands at 0.25, which is acting as a resistance level. Equally, important indicator Option Pain is at 11000, indicating weekly expiry at 11000. A shift in option pain will provide further levels of expiry. So keep tracking Max pain.
Significant open interest buildup on both the side, Especially 11000 CE to 11500 CE and 11000 PE to 10000 PE which indicates that the market is facing support from both the side. Now we have to follow what changes we will get on Monday for further confirmation about the range for this week.
Keep tracking open interest to analyze market participant’s behavior. If you don’t know how to analyze open interest for weekly option hedging strategies. Just enroll for our Option Strategies – A Mentorship Program.
Nifty weekly Options Strategy: Iron Condor
*This strategy is only valid if there is no Gap-Up or Gap-down on Monday
Initially, you can keep a stop loss of 11800 & 11200 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too.
If you find that Nifty is giving a breakdown and sustaining below 10750 then square off 11150 CE & 11300 CE in profit, and short 11000 CE and buy 11150 CE.
The same thing you can do with put spread means if you got a breakout from 11250. You can shift your put spread to 150 points up.
If you want to learn these strategies and their adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program.
Bank Nifty Weekly Analysis with options strategy
We saw a huge decline in Banknifty in the last few weeks and there is no sign of recovery. After a huge Gap-down on Friday, we are trading below 76.8% retracement level.
Now 76.8% retracement level which is at 27850 will act as a strong resistance level. If Banknifty manages to sustain below in the next 2-3 trading session then we can expect some new lower levels.
Here if you are holding a short trade, the hold it with proper stop-loss. You can initiate a short trade if Bank Nifty manages to sustain below 27800 in the next 2-3 days. I suggest, wait for some confirmation before entre in a trade. let it settle down first.
Bank Nifty Weekly options chain analysis
Based on option chain data, the highest Open interest stands at 29000 CE & 27000 PE, followed by 28500 CE & 27500 PE. PCR of all strikes is 0.65, which indicates a slightly oversold zone. PCR at 27000 stands at 10, which is acting as an immediate support level.
The Put-call ratio at 28500 stands at 0.26, which is acting as a resistance level. Equally, important indicator Option Pain is at 28000, indicating weekly expiry at 28000. 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 Options Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustaining below 27000, then Shift your Call spread to 500 points down.
The same thing you can do with put spread means if you got a breakout from 28500. You can shift your put spread to 500 points up.
If you want to learn these Weekly expiry option strategies and their adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program.
Much Check this also– Performance of the Option strategies, Nifty & BankNifty Weekly Analysis with Option strategy, Nifty Option Strategy for Budget Session, A low-risk options strategy in LICHSGFIN, An iron condor options strategy in ICICIBANK, Reverse Jade Lizard options strategy in UPL, A high probability options strategy in YESBANK
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*( Please avoid any question like which Call or Put we should buy in the coming week).
Options Strategies – A Mentorship Program
On September 01, 2019, We have launched a new mentorship program for Option strategies, in which we’ll discuss how can we deploy these strategies? What rules we should follow before taking a trade? And what should be our adjustments if the script is moving against your direction?
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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.