Weekly Analysis of Nifty and Bank Nifty with Best Weekly Option Strategies

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Hey Folks! I hope you are safe and healthy in this COVID-19 pandemic. This is our first weekly post of the Year 2021, and I wish you a pleased and prosperous New Year. I Started this weekly analysis 2 years back, and you guys gave so much love to this weekly newsletter.

Like our weekly analysis article, today, we will talk about something essential if you are trading with options in this stock market.

Any guess what is it is?

Yes! You are right. It’s Volatility. Volatility has a direct impact on the Options premium. When IV is high, the option premium will also be high, and the Option premium will be low if IV is low. You can use Volatility to choose a stock for your Option strategies.

A stock with high volatility means you will get a good premium from your credit spread, and if the premium you have received is high, that means your risk will also decrease. Little confusing? Don’t worry. Let us understand this with a simple calculation.

Let’s assume you want to create a credit spread with a strike difference of 200 points. For example, You are buying 10500 PE at 20₹ and selling 10700 PE at 80₹ to create a Bull Put Spread. Now how can we calculate the maximum profit and maximum loss with this spread? Use the below formulas:

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  • Maximum Profit = Net Premium Received * Lot Size = (80-20) * 75 = 60 *75 = 4500₹
  • Maximum Loss = (Spread – Premium Received) * lot size = (200 – 60) * 75 = 140 * 75 = 10500₹

So the maximum loss with the above strategy is 10500₹, and the maximum profit is 4500₹. We need to keep in mind that spread is constant, and the only premium is the thing that can increase or decrease. Now let’s come to our initial question.

As we know that if volatility increase, the premium will also increase. that means you will receive a higher premium. Now let’s say you are receiving 70₹ as net premium so the net loss will be 9750₹ {(200 – 70) *75} and the maximum profit will be 5250₹ (70*75).

I hope now you have understood how volatility impacts Option premium. So the next time you are scanning stock for your options strategies always check its IV, i.e., implied volatility. If you don’t know how to compare IV and scan stocks based on it, you can come to our Mentorship Program, where I will share with you a simple trick you can use to scan stocks. Click on the below button for more details:

Nifty weekly analysis and Option strategies

Nifty chart today

Nifty open on a positive note with a gap up opening this week. Every day we saw a new high in Nifty which is a very good sign for bulls. We saw a continuous rally after Nifty gave a breakout from its crucial level of 12000. Now, what next?

If you look at the chart, you will find that Nifty is heading towards our prescribed target of 14380. On the downside, 14050 is acting as the stop-loss for our long trade.

The market is at an all-time high, and a possibility of profit book can’t be rolled out here. So keep your positions with proper hedge or book partial profit here. Right now, the trend is bullish, so any decline should be treated as buy on dips opportunity.

A sell signal will generate only after a breakdown from 13000. So act accordingly.

Nifty Weekly Option Chain analysis

Nifty weekly option chain analysis

Based on option chain data, the highest Open interest stands at 14300 CE & 14200 PE, followed by 14500 CE & 14000 PE. PCR of all strikes is 1.11, which indicates a neutral market. PCR at 14000 stands at 10, which is acting as an immediate support level.

The Put-call ratio at 14500 stands at 0.06, which is acting as a resistance level. Equally, an important indicator, i.e., Option Pain, is at 14200, indicating weekly expiry at 14200. A shift in option pain will provide further levels.

Significant open interest buildup on PUT sides indicating that nifty is tracking support from lower levels and expecting bullish activity in the coming week. Based on Option chain data, 13500 & 13000 are the support levels & 14000 & 14500 are the resistance levels for this expiry.

Keep tracking open interest to analyze market participants’ behavior if you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.

Nifty Weekly Option Strategy: Iron Condor

Nifty weekly option strategy

Possible adjustments:

Initially, you can keep a stop loss of 14050 & 14550 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too.

If you find that Nifty is giving a breakdown and sustaining below 14050, 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 14550. You can shift your put spread to 300 points up.

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

Banknifty Weekly analysis with option strategy

banknifty daily chart analysis

After given a breakout from its crucial resistance level, i.e.,25200, we saw an excellent recovery in BankNifty. BankNifty is trading it in a time-high zone, and there is no sign of weakness.

We can’t neglect the possibility of profit booking in this continuous rally, so keep your trades with a proper hedge. 32000 is the level we should keep on the radar. A sustainable recovery will lead to the next target of 33300.

On the downside, 29000 is the crucial support level. A sell signal will only generate after a breakdown from this level. So if you see a downfall from the current level, our strategy should be buy-on-dips until BankNifty is holding 29000.

Bank Nifty option chain analysis

Bank Nifty option chain analysis

Based on option chain data, the highest Open interest stands at 32500 CE & 32000 PE, followed by 33000 CE & 31500 PE. PCR of all strikes is 0.86, which indicates a neutral market. PCR at 31500 stands at 7.04, which is acting as an immediate support level.

The Put-call ratio at 32500 stands at 0.01, which is acting as a resistance level. Equally, important indicator Option Pain is at 32000, indicating weekly expiry at 32000. A shift in option pain will provide further levels.

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If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.

Bank Nifty Weekly Option Strategy: Iron Condor

banknifty best weekly option strategy

Possible adjustments:

If you find that BankNifty gives a breakdown and sustaining below 31550, 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 32850. You can shift your put spread to 1000 points up.

If you want to learn these Weekly expiry options strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(33% OFF).

Much Check this also– Performance of the Option strategies, Nifty & BankNifty Weekly Analysis with Option strategy, Nifty Option Strategy for Budget SessionA low-risk options strategy in LICHSGFINAn iron condor options strategy in ICICIBANKReverse Jade Lizard options strategy in UPLA high probability options strategy in YESBANK

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

If you need More real-time assistance on Nifty and Bank nifty weekly analysis and options strategies Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on these weekly options 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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On September 01, 2019, We have launched a new mentorship program for Option 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 direction?

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DISCLAIMER: – we are not a SEBI research analyst. Weekly analysis, Views or the options 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.

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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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