Hello guys! I hope you all are safe and healthy in this COVID-19 pandemic. Every week, I’m sharing this weekly article to provide some tips, you should follow to be a successful trader along with weekly analysis and Nifty and bank nifty weekly options strategies for coming weekly expiry.
I suggest you should subscribe to our newsletter through the form you can see on the bottom to get these tips directly into your email. Before we proceed further, I suggest you should check my last week article, where I have shared “Why everyone should learn and implement option hedging strategies in their trading and investing activity?”
Now lets come to our Nifty and bank nifty weekly options strategies. I’m creating some limited risk options strategies every week. Many were asking why you are creating only limited risk strategies when we can get some good return from unlimited risk strategies like short straddles or strangles.
When you are trading with weekly options strategy, one thing you should keep in mind that in weekly expiry gamma plays very aggressively. So if we are keeping any unlimited risk strategy, it can hurt very badly even with a small one-sided movement. So it is more important to keep your risk on the limited side.
I have seen much time, the market goes higher or lower from our range, but later the next day it reverses and comes to our range to expire there. In such case if we have an unlimited risk strategy, it may bound us to close that strategy with a huge loss but with limited risk strategy either you may close with limited loss or close with the profit you are expecting.
So in this case your chances to make money will much higher compare to an unlimited risk strategy. That’s the reason I always prefer a limited risk strategy Because I know how much max I can loose in that particular trade. It helps me to manage my risk. And you know “Risk management is the only holy grail to make money in this stock market.”
So focus more on how to lose less instead of how to make more? If you manage to reduce the loss, that means you are increasing your profit. So focus more limited risk strategies if you are trading nifty and bank nifty weekly options expiries.
If you want to learn and trade with me. You can enrol to our Option Strategies – A Mentorship Program. Where I’m teaching to implement and adjust these weekly options strategies in more practical ways.
- 1 Weekly analysis with Nifty weekly options strategies
- 2 Bank Nifty weekly analysis and Option heading strategies
- 3 Options Strategies – A Mentorship Program
- 4 The best strategy for Bank Nifty Future Intraday
Weekly analysis with Nifty weekly options strategies
After a good upside rally, we saw Nifty was taking some halt around 13000. This week, we saw a breakout from 13150, and Nifty is trying to sustain above 13150, which is very good sign for the bulls.
Now our target on the upside is 13550. On the downside, 13150 – 12800 is acting as a strong support zone now. A breakdown from 12800 will lead to the downside targets of 12550. The overall trend is and there is no sign of weakness. So avoid any counter trade here. Try to find a long opportunity only.
Now let us look at the option chain data to find the nifty weekly range for coming week.
Nifty weekly options chain analysis
Based on option chain data available at the time of writing this post, the highest Open interest stands at 13200 CE & 13200 PE, followed by 13500 CE & 13100 PE. PCR of all strikes is 1.32, which indicates an overbought market. PCR at 13000 stands at 6.04, which is acting as an immediate support level.
The Put-call ratio at 13500 stands at 0.04, which is acting as a resistance level. Equally, important indicator Option Pain is at 13200, indicating weekly expiry at 13200. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on PUT side. Indicating good pressure from lower levels. So based on the OI, the possible range for this week should be 13000 – 13500.
Keep tracking change in open interest to analyze market participant’s behaviour, so that you can adjust your position accordingly. If you don’t know how to do weekly analysis to find the best Weekly nifty and bank nifty weekly options strategies. Just enroll for our Option Strategies – A Mentorship Program.
Nifty Weekly options Strategies: Iron Condor
Possible adjustments for Nifty options strategies:
Initially, you can keep a stop loss of 13000 & 13400 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 2000₹).
If you find that Nifty is giving a breakdown and sustaining below 12950, then square off call spread and bring it down to 300 points lower levels. and make it an iron condor.
The same thing you can do with put spread means if you got a breakout from 13450. You can shift your put spread to 300 points up.
If you want to learn how to do weekly analysis to find the Weekly nifty option hedging strategies with adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program.
Bank Nifty weekly analysis and Option heading strategies
After a good rally, BankNifty is taking some rest and trading in a range of 28500 to 30800. A breakout from 30800 will lead to the next target of 33600.
On the downside, 28500 is acting as a strong support zone and a breakdown from 28500 will lead to some lower levels at 26800 & 25500.
The overall trend is UP and there is no sign of weakness, so do not initiate a short position. Look for a long opportunity and trail your stop loss and keep your positions with a proper hedge.
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Bank Nifty weekly options chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 30000 CE & 29000 PE, followed by 31500 CE & 29500 PE. PCR of all strikes is 0.90, which indicates a neutral zone. PCR at 29000 stands at 9.09, which is acting as an immediate support level.
The Put-call ratio at 30000 stands at 0.29, which is acting as a resistance level. Equally, important indicator Option Pain is at 29600, indicating weekly expiry at 29600. A shift in option pain will provide further levels.
If you don’t know how to do the weekly analysis to find your bank nifty weekly option hedging strategies, Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty weekly option Strategies: Iron Condor
Possible adjustments for Bank nifty options strategies:
Possible adjustments for this weekly Bank Nifty option Strategies are:
- Follow a stop-loss if the max loss is above 2500₹, close this strategy.
- If you find that Bank Nifty gives a breakdown and sustaining below 28800, then shift your Call spread to 1000 points down. The same thing you can do with put spread means if you got a breakout from 30400. You can shift your put spread to 1000 points up.
If you want to learn these bank nifty option strategies with adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program.
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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 selling strategies, in which we’ll discuss how can we deploy these Options strategies? What rules we should follow before taking a trade? And what should be our adjustments if the script is moving against your prediction?
The best strategy for Bank Nifty Future Intraday
We introduce a new BankNifty Future best strategy for Intraday. Giving a decent return consistently. Please check the link below for more information.
DISCLAIMER: – we are not a SEBI research analyst. Views or the weekly analysis with nifty and bank nifty weekly options trading strategies 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.