Weekly analysis with best option selling strategies for 18th August 2021

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Hello folks! How’s your trading going? Hope you are safe and healthy in this COVID-19 pandemic. Every week, I’m sharing option selling strategies for nifty and banknifty to help our fellow traders.

These strategies are giving a decent return without any unnecessary noise. I’m getting good feedback too. Some are following as a free resource to get a strategy (tips), and some are following as a new opportunity to learn.

I respect both the traders and thank you for giving me your attention. It’s the best reward I can get. But as I’m saying in every weekly newsletter, I believe in learning. We should keep more and more focus on learning because your learning is the only mentor who will help you throughout your entire life.

These free tips can give you short-term gains, but for long-term survival, you need a proper understanding of what you are doing. So instead of just following, try to understand the logic behind every strategy. If you need any help from my side, I’m always there. Just ask your query in the comment box, and I will be very happy to solve all your queries.

But you have to put your first step. Take action today to achieve your goals in the future. I’m getting so many queries that “I’m following market from last 20-30 years but still waiting for some consistent return from the market. One day I make money and next day market take it back. What to do?”

My answer to them is: You are not analyzing the market; you are just following or spending time to find some good free tips. If you see someone is making good money and sharing screenshots every day, you start following. you expect that he/she will share some inside information (which they don’t know) and you will make millions from it.

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They think that we need just one trade to make lakhs. They keep searching for that one free advice, but the harsh reality is: there is no shortcut to being a successful trader. If you want to go to heaven, you have to die first.

Everyone is sharing their knowledge here. It’s up to you, what you want to grab from it? Are you learning from them or just looking for some magic trick that may work this time?

I don’t want to discourage you, just wanted to tell you that whatever action we are taking today, will get the results in the future. So take a step which can help to build a better future for you. Spend more and more time on learning and implementing. Find a good mentor who can guide you in more practical ways. Who can assist you from his own experience? 

In the world of technology where we have theoretical knowledge just few click away through Google, YouTube, etc, we are missing that practical approach that separate leaders from the novice traders. If you want to succeed in this market, an experienced mentor is highly required. Without proper guidance and handholding support, you can’t cross this river.

You can get the theoretical knowledge from anywhere but the real problem starts when you start implementing it. Whom to contact in the real market if you are stuck somewhere? That’s the USP of our Option Strategies: A Mentorship Program. You will get proper handholding support until you start generating your monthly return with option selling strategies. If you want to know more about this unique program click on the below button.

If you need any help or have any queries or feedback, type in the comment box and I will love to answer all your questions.

Weekly analysis with Nifty option selling strategies

Nifty chart today

After spending almost 6 weeks in a range of 15500 – 15900, Nifty gave a breakout last week. and trade above 16000 this whole week too. I have shared in the last weekly analysis and option selling strategies post that 15900 – 16000 has become a good support zone now and 16450 – 16500 is the new resistance here.

In the last two trading days, we saw a good rally in the market, and as I have told earlier that there is no sign of weakness. So I suggest trade with the market. Do not take a counter trade.

Keep one thing in mind: Market always goes against the noise. So whenever you see that everyone is predicting about a fall, that’s a good time to go long.

Many will start arguing that there is no positive news for the economy, market, etc… then why the market is going UP? It will fall soon. I say that I don’t know about all these things, nor I’m following. I’m just following the market. The market is Positive which means I’m long. And when the Market will give a sell signal I will reverse my position.

I don’t have any intention to beat the market. I’m happy with the market. Our ultimate goal is how to make money. We are not here to show how good I’m at predicting the market. Right? When I can make money by reacting based on the market why focus on predicting the market. What you feel, is it make sense? Tell me in the comment box.

So based on the chart: Nifty is in Up Trend and range for the coming week is: 16000 – 16500. A sustainable breakout from 16500 will lead to the next target of 16700 & 17000.

Open interest analysis for Nifty option selling strategies

Nifty option Interest for 18th August 2021 weekly expiry

Based on option chain data, the highest Open interest stands at 16400 CE & 16400 PE, followed by 16500 CE & 16300 PE. PCR of all strikes is 1.58, which indicates an overbought market. PCR at 16200 stands at 9.56, which is acting as an immediate support level.

The Put-call ratio at 16600 stands at 0.15, which is acting as a resistance level. Equally, important indicator Option Pain is at 16400, indicating weekly expiry around 16400. A shift in option pain will provide further levels of expiry. So keep tracking max pain.

Significant open interest buildup on the PUT side. Indicating that Nifty is facing good support from the lower level and expecting to be in an uptrend only. So based on the OI, the possible range for this week should be 16200 – 16600.

Keep tracking change 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 option selling strategies. Just enroll for our Option Strategies – A Mentorship Program.

Nifty option Strategy: Iron Condor

nifty option selling strategies

Possible adjustments for this Nifty weekly strategy:

Initially, you can keep a stop loss of 16250 & 16650 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 if the loss is more than 2000₹ per lot).

If you find that Nifty is giving a breakdown and sustaining below 16250, then square off call spread and bring it down to 300 points lower levels.

The same thing you can do with put spread means if you got a breakout from 16650. You can shift your put spread to 300 points up.

If you want to learn these Nifty and BankNifty option selling strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program (Last chance to get 33% OFF).

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Weekly analysis with banknifty option selling strategies

Banknifty chart today

Despite a good upside rally, Banknifty is still trying to sustain above 36000. A sustainable breakout is required for the further upside rally.

If banknifty manage to sustain above 36000 for a minimum of 5 days then this level will become its support level and we can expect some higher targets in the coming session. Failed to sustain above 36000 will again drag it into its previous range of 34000 – 36000.

The overall trend is sideways but A successful breakout from 36000 will lead to its upside target of 37600 and a breakdown from 34000 will lead to 30000.

Wanted to learn how to generate a consistent return with Option selling strategies? Enroll in our Mentorship Program with a discount this week.

Banknifty Open interest analysis for option selling strategies

banknifty open interest

Based on Bank nifty option chain data, the highest Open interest stands at 36000 CE & PE, followed by 36200 CE & 31000 PE. PCR of all strikes is 0.93, which indicates a neutral market. PCR at 35500 stands at 2.96, which is acting as an immediate support level.

The Put-call ratio at 36500 stands at 0.11, which is acting as a resistance level. Equally, important indicator Option Pain is at 36000, indicating weekly expiry of around 36000. A shift in option pain will provide further levels.

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

Bank Nifty weekly expiry Strategy: Iron Condor

Banknifty option selling strategies

Possible adjustments:

If you find that BankNifty gives a breakdown and sustaining below 35400, 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 36600. You can shift your put spread to 1000 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.

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

If you need More real-time assistance on the Nifty and Banknifty option selling strategies, Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on these nifty and Banknifty option selling strategies. You can contact us on WhatsApp

*( Please avoid any question 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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Sachin Sival is the founder and CEO of Replete Equities, an options trading company that specializes in delta hedging. A self-taught trader, Sachin has a passion for volatility trading and stock trading. Sachin loves to hone his skills by reading up on new strategies and techniques as well as taking part in industry events. In addition to being a successful entrepreneur, Sachin also takes pleasure in photography - as a hobby.

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