Options trading is a complex yet rewarding financial instrument that allows traders to profit from market movements without directly owning underlying assets. However, success in options trading hinges on a well-defined strategy. With the December 19, 2024 expiry approaching, the Nifty 50 index presents a dynamic landscape for traders.
In this blog post, we will delve into a proven weekly options strategy designed to capitalize on the potential volatility of the Nifty 50. By understanding the current market conditions, identifying key support and resistance levels, and implementing a disciplined approach, traders can significantly enhance their chances of achieving profitable outcomes.
Nifty Weekly Options Strategy for December 05, 2024 Expiry
Before we examine the weekly option strategy in depth, we need to analyse the overall trend and important levels of Nifty50.
This week we have seen Nifty was traded in a tight range of 200 points from 24500 to 24700.
Today it is trying to give a breakdown from 24500 for the next support zone of 23800 - 24000.
If Nifty manage to sustain below 24500 then 23800 - 24000 will act as the immediate support and 24500 - 24700 will act as immediate resistance for the coming sessions.
The overall trend looks neutral, because Nifty is trading near the monthly VWAP.
Further decline is only possible after a sustainable breakdown from 23800. So till it is trading in the above said range, a neutral approach is good.
At the time I'm writing this article, Open Interest also indicates that max pain is at 24400. Immediate support is at 24200 and 24600 is acting as immediate resistance based on the PCR.
By following these levels we can create a range-bound strategy.
Nifty Weekly Options Strategy for December 12, 2024 Expiry
Below is the weekly option strategy based on the levels, mentioned above.
I'm keeping a very nominal risk for it.
Adjustments for Nifty Weekly Option Strategy
I prefer to keep my trading setup very simple. So as my adjustments too.
If Nifty goes below and I find the premium of our bought Call went below 80%. We book the bought call and bring it down to 24500.
Same as for the Put side. This means If Nifty goes UP, we will bring out bought PE to 24300 from 24150.
The idea is to reduce the spread and convert it into a no-loss option strategy.
If you want to learn and get the adjustments on realtime basis, can upgrade your subscription and join our premium telegram channel.
Please note: As you know that lot has changed after the weekly removal of other indices. So focusing only one strategy or indices looks difficult to make a more stable MTM. So I'm for using on a basket of weekly + Monthly expiries including stocks and Indices.
All the strategies including Realtime adjustments, I'm sharing in my premium channel. You can join through below link.
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Below is the strategy that we shared on Friday and booked profit around 3.5% this week.
We have shared other strategies with real-time adjustments in our premium telegram channel. You can upgrade our subscription by joining this community.
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Disclaimer: This analysis is purely for informational purposes and does not constitute investment advice. Trading involves risk, and you should always conduct your own research and consult with a financial advisor before making any investment decisions.
