Nowadays, the market is unpredictable. Every day we can see wild moves in both directions. In the first half, the market gives us an upside movement, and it looks like that trend is complete UP. We are getting the same move in the second half too, but the direction is opposite. In this weekly analysis options strategies post, let’s talk about how we can deal with this situation.
In these wild movements, you can see that we are not going anywhere despite these movements. The market is trading in a range only. When the market is trading in a range, you will get many whipsaws in any strategy. At this time, the most important thing is, “How do you keep yourself calm to make a better decision?”
If your decisions are coming from your emotions, emotions like “Fear or Greed,” then it’s a dangerous thing, especially for a retail trader. You should work and develop a system that can help to keep yourself calm in every situation.
Now you have two options. It would be best if you taught yourself how to handle your emotions or create a system that can help keep yourself calm in any situation. I prefer an easy one, i.e., creating a system that can help keep yourself away from any emotional decision. Now the question is:
How to create that system?
As per my experience, We will find ourselves trapped in emotions only if we are getting something unexpected. Like an unexpected profit or a sudden loss. So if we manage to create a system that can help keep our risk and reward on the limited side, our 50% of work will be done.
Rest 50% is to follow and implement that system with proper discipline. This is the crucial part which you have to teach yourself. In starting, it may look a little tight because you don’t have that experience, but once you start following and gain some experience, you will get your confidence back, and things will become smooth for you. Now you will ask:
Do we need to need to create a new or unique system for ourselves?
NO, We don’t need to create any new or unique system for ourselves. We already have. We have “Non-Directional Limited Risk Options Strategies.” Options strategies like Iron Condor, Butterflies, etc. These strategies help keep your risk on the limited side and generate some consistent return without any worry about a gap-up or gap-down opening in this highly volatile market. Like the market, we can see nowadays.
My reasons to follow and trade with these strategies are simple. I don’t want to spoil my quality time with my kids because tomorrow’s market may gap-up or gap-down due to global or domestic news.
I don’t want to spend the whole night looking at my phone screen to track SGX-Nifty because it is behaving unexpectedly.
We all want a stress free life. A Stress-Free experience is only possible when you know how much max loss you can get if tomorrow’s market open gap-up or gap-down by 20%+. I know the probability is very low in such events, but why take a risk when you have responsibilities. After all, we all are trading to generate some extra income to fulfill our obligations.
I hope now you understand; it’s more important that we need a system that helps us generate some consistent return and help keep our risk on the limited side to protect our capital. And these “Non-directional Limited risk strategies” are working very correctly.
So I suggest you should start learning and implement these strategies, especially in this highly volatile market. We, too, have a unique Option Strategies – A Mentorship Program where you can learn and implement these strategies with my live mentorship. I will be there to help and solve all your queries related to options strategies.
- 1 Nifty weekly analysis with options strategies
- 2 BankNifty Weekly Analysis with options strategy
- 3 Options Strategies – A Mentorship Program
- 4 The best strategy for Bank Nifty Future Intraday
Nifty weekly analysis with options strategies
After a good rally, we can see Nifty is trading in a range. Now you can see on the chart that 13500 to 14000 is the range we can expect in the coming sessions.
As we know, the overall trend is UP, so any Downside movement here should be a BUY-on-dips opportunity. A breakdown or a breakout from 13500 & 14000 respectively will give further levels.
Do not take any counter-trade because the trend is up and the probability to make money in a short trade is very low.
Nifty weekly Options Chain analysis
Based on option chain data, the highest Open interest stands at 14000 CE & 13500 PE, followed by 13800 CE & 13700 PE. PCR of all strikes is 1.01, which indicates a neutral market. PCR at 13500 stands at 10, which is acting as an immediate support level.
The Put-call ratio at 14000 stands at 0.26, which is acting as a resistance level. Equally, important indicator Option Pain is at 13700, indicating weekly expiry at 13700. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on the call side, which indicates that the market is facing resistance from the higher side. So as per the weekly analysis and Open Interest data
- support 2 = 13000,
- Support 1 = 13500,
- Resistance 1 = 13800 and
- Resistance 2 = 14000
Keep tracking open interest to analyze market participant’s behavior. If you don’t know how to analyze open interest for weekly option hedging strategies. Just enroll for our Option Strategies – A Mentorship Program.
Nifty weekly Options Strategy: Iron Condor
Initially, you can keep a stop loss of 13500 & 13950 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 13500, 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 14000. You can shift your put spread to 300 points up.
BankNifty Weekly Analysis with options strategy
In my last weekly analysis post, I have shared that bank nifty is complete Uptrend and a good idea to take a long trade only. We saw this week that banknifty is facing good resistance around 30800.
What you think, Banknifty will take resistance around 30800? This level is very crucial in terms of sentiments. A breakout will attract more positive sentiments, and we may see some more upside levels here.
On the downside, 28500 is the crucial support level and a breakout will lead to further downside levels. If you are having a long trade, you can keep 28500 as the stoploss.
This is the best time to think about hedging. Protection of your portfolios is more important than anything else right now.
Bank Nifty Weekly options chain analysis
Based on option chain data, the highest Open interest stands at 31000 CE & 30500 PE, followed by 31500 CE & 29500 PE. PCR of all strikes is 0.84, which indicates a slightly oversold market. PCR at 30000 stands at 8.79, which is acting as an immediate support level.
The Put-call ratio at 31000 stands at 0.15, which is acting as a resistance level. Equally, an important indicator “Options Pain” is at 30500, indicating weekly expiry at 30500. A shift in option pain will provide further levels.
Remember one thing: When IV is high, data can change anytime so keep following more closely.
If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty best Weekly Options Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustaining below 29850, 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 31150. 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 enrol 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 Session, A low-risk options strategy in LICHSGFIN, An iron condor options strategy in ICICIBANK, Reverse Jade Lizard options strategy in UPL, A high probability options strategy in YESBANK
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*( Please avoid any question like which Call or Put we should buy in the coming week).
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The best strategy for Bank Nifty Future Intraday
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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.