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Weekly analysis with Best Options strategies for 12th MAY Exp

• Updated on: May 8, 2021
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Every day we are placing many trades. If we analyse this trade, we find that more than 50% of the trades are profitable. But when we look at our own performance, We find that we made money in 10-20% traders only. What’s the reason? Every week in my weekly analysis and options strategies post I’m trying to solve your one problem. Today we will discuss trading psychology.

So our question is “If more than 50% of trades are profitable, why we are making money in just 10-20% trades?” A possible reason is trading psychology. We are trying hard to build a trading system but somewhere we failed to implement that system.

Many times we are making decisions based on our emotions. If a trade is going wrong, we are not following our stop-loss rules. If another trade is hitting our targets, we are still holding due to our greed and expected this trade will cover all our losses. The result we both know.

Now, what to do to overcome this situation? One thing you should keep in mind that there is no other alternative. You must follow your trading setup.

No one can teach you how to follow your system. It’s you and the only you who has to stick with your system. You have to tell your mind that the decision you are taking based on the emotions, could be your worst decision.

Best way to deal with this situation is, “Whenever you find that your emotions are involving in any trade, come out from that trade.” Believe me, if you follow this exercise, you will find yourself in a better situation.

Successful trading is all about how you manage your emotions and behave during the trade. If you manage to keep yourself calm, you can make better decisions.

I too learn and follow the same method to keep myself away from any decisions which come through emotions. Options strategies are helping a lot to keep me calm and stable in any good or bad situation Because I know how much max I can loose and how will I manage my position to convert that loss into profit.

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Nifty weekly analysis with options strategies

nifty weekly weekly analysis with options strategies

After a decline, we saw that Nifty is trying to take support from 14500. Now 14500 – 14200 is acting as a strong support zone and I believe it should respect that level.

Now as we know that Nifty started taking support from 14500 – 14200, What next?

If you look at the chart, You will find that 15000 is the resistance here. A breakout is required to generate a buy signal again. After a breakout from 15000, we may see an upside movement till 15500 and a breakout from 15500 will open new opportunities for long holders.

For the coming weeks until nifty is not giving a breakout from 15500, You may trade with range-bound strategies.

I suggest do not hold or initiate any short trade till Nifty is holding 14000. A breakdown from 14000 will generate a sell signal for the further downside targets. So act accordingly.

Nifty weekly Options Chain analysis

Nifty weekly open interest

Based on option chain data, the highest Open interest stands at 16000 CE & 14500 PE, followed by 15000 CE & 14700 PE. PCR of all strikes is 0.94, which indicates a neutral market. PCR at 14500 stands at 5.08, which is acting as an immediate support level.

The Put-call ratio at 15000 stands at 0.29, which is acting as a resistance level. Equally, important indicator Option Pain is at 9300, indicating weekly expiry at 14800. A shift in option pain will provide further levels of expiry. So keep tracking max pain.

Significant open interest buildup on both the side, which indicates that the market is facing support from both the side. 

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

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Possible adjustments:

Initially, you can keep a stop loss of 15150 & 14500 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 14500, then square off call spread and bring it down to 400 points lower levels.

The same thing you can do with put spread means if you got a breakout from 15150. You can shift your put spread to 400 points up.

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

BankNifty Weekly Analysis with options strategies

Banknifty weekly chart analysis

After a profit booking on the Higher levels, we saw BankNifty took support at 31000 – 30500 zone. Now, this zone is acting as a good support zone and a breakdown will lead to further downside levels.

As per the Fibonacci tool, We may expect some range-bound activity from here to lead to a sustainable upside rally in BankNifty.

But, do not just place a buy order here. I believe a good buy signal will generate only after a breakout from 35000. Till then you can trade with range-bound strategies.

Nowadays, IV is also on the higher side that too gives better opportunities for range-bound credit spread strategies. These strategies are not only helping in managing your risk but have a high probability of success too. You can check few examples for these limited risk range-bound option strategies here.

When you are trading with limited risk, your chances are high to make good and lose less which is the key to success in this market.

Bank Nifty Weekly options chain analysis

Banknifty weekly open interest data

Based on option chain data, the highest Open interest stands at 34000 CE & 32000 PE, followed by 33500 CE & 32500 PE. PCR of all strikes is 0.76, which indicates a neutral market. PCR at 32000 stands at 10+, which is acting as an immediate support level.

The Put-call ratio at 33500 stands at 0.11, which is acting as a resistance level. Equally, important indicator Option Pain is at 33000, indicating weekly expiry at 33000. 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.

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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 best Weekly Options Strategy: Iron Condor

banknifty weekly options strategies

Possible adjustments:

If you find that BankNifty gives a breakdown and sustaining below 32000, 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 34000. 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 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).


Options Strategies – A Mentorship Program

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?

The best strategy for Bank Nifty Future Intraday

We Introduce a new BankNifty Future strategy for Intraday. Gave a decent return consistently. Please check the link below for more information.


DISCLAIMER: – we are not a SEBI research analyst. 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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