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 January 16, 2025 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 January 16, 2025 Expiry
Before we examine the weekly option strategy in depth, we need to analyse the overall trend and important levels of Nifty50.
We have seen a sharp decline from higher levels in this highly volatile week. Now 23750 is acting as a strong resistance and 23450 is acting as a strong support level.
If Nifty manages to sustain below 23450 then only we can expect some more decline till 22800.
The overall trend looks bearish, but we approach it as range-bound because Open Interest shows a different picture, which we discuss in the next section.
So by looking at the chart, we can create a delta-neutral strategy to utilise this range-bound acting for this weekly Nifty Expiry.
At the time I'm writing this article, we can see a huge addition of open interest near 23400 which indicating that Nifty is trying to take support near this level.
This is the reason we are creating a range-bound strategy instead of a bearish one.
Nifty Weekly Options Strategy for January 16, 2025 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 will square off the bought call and bring it down to 23600.
Same as for the Put side. This means If Nifty goes UP, we will bring out bought PE to 23400 from 23250.
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 real-time 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 on Real-timeone 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 Real-timethe adjustments, I'm sharing in my premium channel. You can join through below link.
Below is the strategy that we shared for December 26, 2024, and we booked a profit of 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.
