Mouse Earn Iron Condor | Best Nifty & Bank Nifty Weekly Options Strategies for August 3, 2023

Mouse Earn Iron Condor: A low-risk, high-probability options strategy for Nifty & Bank Nifty weekly options. Learn more!

Mouse Earn Iron Condor | Best Nifty & Bank Nifty Weekly Options Strategies for August 3, 2023

Hey Folks! I hope you are safe and healthy. In our weekly newsletter, we are sharing some valuable tips to be a successful trader along with Nifty & Bank Nifty Weekly Options Strategies for the coming week.

In my previous weekly posts, I have shared that we should do proper calculations before entre in any real trade with options. These calculations are based on the Greeks. The option premium itself carries all these calculations.

Change in the value of any Greeks will reflect in the change in the premium. We have to learn all the values to know how the option premium of any particular strike will behave with the price movement of that underline asset and the time to expiry.

Many times we saw that our underline asset is moving in our direction but our option premium is going against the movement. This is because of the other Greeks like theta or vega, that are playing against your analysis and prediction.

I’m getting so many queries like: I bought 240 Call Option 3 days back with a premium of 4₹ when the stock price was at 225. Now when the price is at 235, my 240 CE strike is trading at 3.5₹. The price of the underline assets ( Stock) is increasing but my 240 call option Premium is not going with the price in fact it is decreasing.

This is because Theta is playing against the Delta. Recovery in Option premium due to Delta is low compared to the premium decrease by Theta. That’s the reason despite the upside movement in the stock, the option premium is continuously decreasing which results in a net loss. Read the below post for more understanding;

So in simple words, Learn the basics of option premium and start implementing. This is the only way to get success in options trading.

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Nifty Weekly analysis and Nifty weekly Options strategies

Nifty support and resistance for tomorrow

In the last weekly post, I shared that Immediate support is around 19500 in Nifty on the downside, and On the upside 20000 is the psychological level that needs to break for further upside level.

This whole week, nifty was trading in the range of 19500 - 20000 without giving any fresh breakout or breakdown.

Now 19300 - 19500 is the range that is acting as the support zone. A breakdown from 19300 will lead to further downside levels.

The overall trend is UP but we can't neglect the possibilities of profit booking on higher levels. So keep your positions with tight hedges.

The broad range you can follow is 19100 - 19700. You can follow this range for the coming week. Let’s look at Option chain data to find the range for the coming week.

Nifty Open interest analysis for Nifty weekly options strategies

Nifty Open interest analysis for Nifty weekly options strategies

Based on option chain data, the highest Open interest stands at 19800 CE & 19600 PE, followed by 19700 CE & 19500 PE. PCR of all strikes is 0.62, which indicates an oversold market. PCR at 19500 stands at 3.87, which is acting as an immediate support level.

The Put-call ratio at 19800 stands at 0.31, which is acting as a resistance level. Equally, important indicator Option Pain is at 19650, indicating weekly expiry at 19650. A shift in option pain will provide further levels of expiry. So keep tracking max pain.

Significant open interest buildup on the call sides. Indicating that Nifty is facing good resistance from higher levels and expecting to be in a range with a bearish view. So based on the OI, the possible range for this week should be 19500 – 19800.

Keep tracking changes in open interest to analyze market participant’s behavior, so that you can adjust your position accordingly. If you don’t know how to analyze open interest for nifty and bank nifty weekly Expiry strategy. Just enrol for our Option Strategies – A Mentorship Program.

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Nifty weekly options Strategy: Mouse Ear Iron Condor

Nifty weekly options Strategy

Possible adjustments:

Initially, you can keep a stop loss of 19300 & 19900 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too. ( Do not hold this strategy is loss is more than 5000₹).

If you find that Nifty is giving a breakdown and sustaining below 19300, then square off the call spread and bring it down to 250 points lower levels.

The same thing you can do with put spread means if you got a breakout from 19900. You can shift your put spread to 250 points.

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Bank Nifty Weekly analysis with options strategies

Banknifty support and resistance for coming week

From the last 2 weeks, BankNifty was trying to sustain above 46000 but couldn't sustain and fall in the range of 44500 - 46000.

Now if you are holding a long trade then hedge it with PUT and for a fresh long trade need to wait.

On the upside, A successful breakout will give us a good opportunity to go long for a target of 48000. On the downside 44500 is acting as a strong support level and a breakdown will drag BAnknifty again into the territory of the bear.

As I always said, let banknifty give a clear sign of entry. Till then trade with limited risk strategies only.

Right now Bank Nifty is trading near to its crucial resistance level. So we have to follow a proper risk management plan here. I suggest trade with a range-bound strategy only until we are not getting any fresh breakouts or breakdowns.

Bank Nifty weekly analysis with option chain data

Banknifty weekly open interest analysis

Based on Bank nifty option chain data, the highest Open interest stands at 46000 CE & 45500 PE, followed by 45500 CE & 45000 PE. PCR of all strikes is 0.69, which indicates a neutral market. PCR at 45000 stands at 7.70, which is acting as an immediate support level.

The Put-call ratio at 45700 stands at 0.37, which is acting as a resistance level. Equally, important indicator Option Pain is at 45500, indicating weekly expiry at 45500. A shift in option pain will provide further levels.

If you don’t know how to do the banknifty weekly option chain analysis, Just enroll for our Option Strategies – A Mentorship Program.

Bank Nifty weekly expiry Strategy: Mouce Ear Iron Condor

bank nifty weekly options strategies

Possible adjustments:

If you find that BankNifty gave a breakdown and sustaining below 44700, then Shift your Call spread to 800 points down.

The same thing you can do with put spread means if you got a breakout from 46100. You can shift your put spread to 800 points up.

If you want to learn these bank nifty weekly options strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(20% OFF).

Post your comments in the comment box if you have a query related to the Nifty and Bank Nifty weekly options strategies. You can ask any question related to options trading in the comment box.

If you need more real-time assistance on Nifty and Bank nifty weekly options strategies, take our premium subscription or open a trading account with us. You will get real-time assistance every month on these Nifty and Bank nifty weekly expiry strategies. You can contact us on WhatsApp

*( Please avoid questions like which Call or Put we should buy in the coming week).



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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.


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