Hello Friends, I hope you all are doing good. Last few weeks due to some workload I couldn’t share my weekly analysis with option strategies before the market close on Friday. In the coming weeks, I will do my best to provide these strategies before the market close so that you can initiate these strategies on Friday itself.
Nowadays, you can see the market is settling down and the volatility is decreasing which is good for the retail traders. But still, the risk is on the higher side so better keep your positions with a proper hedge.
In this weekly analysis with option strategies post, we are keeping focus only on technical analysis and Open Interest analysis to drive our range and trend. I hope this post helps to make a better decision. If you have any feedback or suggestions please don’t hesitate and type in the comment box.
- 1 Nifty Weekly Analysis with Option Strategy
- 2 Banknifty Weekly analysis with option strategy
- 3 Looking for the Best strategy for Bank Nifty Future?
- 4 Options Strategies – A Mentorship Program
Nifty Weekly Analysis with Option Strategy
We saw a very good rally in nifty in the last few weeks. Now 12000 – 12100 is acting as a strong resistance zone but you can see the trend is up and nifty haven’t given any sell signal till now.
So the view is bullish. If nifty gave a breakout from 12100, we can initiate a new long position. At current levels, a new long position is not advisable. But if you are holding a long trade keep its holds.
On the downside 11750 will act as a strong support level, Below 11750 we can initiate a sell trade. So 11750 – 12100 is the sideways range, a breakout or breakdown will lead to further levels.
Nifty Option Chain analysis
Based on option chain data, the highest Open interest stands at 12050 CE & 11900 PE, followed by 12100 CE & 12000 PE. PCR of all strikes is 1.45, which indicates an overbought market. PCR at 12000 stands at 2.3, which is acting as an immediate support level.
The Put-call ratio at 12100 stands at 0.02, which is acting as a resistance level. Equally, important indicator Option Pain is at 12000, indicating weekly expiry at 12000. A shift in option pain will provide further levels.
Significant open interest buildup on both sides, Especially 12000 PE, 12050 CE & 12100 CE, which indicates that the market is trying to trade in a range only. Based on Option chain data, 11900, 12000 are good support levels & 12100 is a good resistance level 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: Modified butterfly
This week i created a directional strategy because I’m slightly bullish in Nifty.
If you find that Nifty gives a breakdown and sustaining below 11900, then square off 12050 CE & 12000 CE in profit, and short 11800 CE and convert it into a bear call spread.
Banknifty Weekly analysis with option strategy
In the last Weekly analysis and option strategy post, I shared that 50% – 61.8% Fibonacci retracement levels always act as a reversal zone. Whenever index came in this range a no-trade zone starts.
Last week banknifty gave a good breakout from 61.8% level and we saw a good rally this week too. On Friday, Bank Nifty broke the previous high(30801) and gave a good sustainable upside movement.
The overall trend is positive and there is no sign of weakness. So don’t buy any put in a hope that now it will reverse. People mostly doing this mistake. They think “Abhi bhout upper aagaya hai, aab thoda correction Hoga.” and in this hope they bought PUT and losing their premiums.
I shared an article to describe this trading psychology. You can read here.
Now 31600 – 31800 will at as a strong resistance zone. A breakout will give us a fress signal for a long trade. On the downside 29800 – 29200 will act as a strong support zone.
Bank Nifty option chain analysis
Based on option chain data, the highest Open interest stands at 31500 CE & 30500 PE, followed by 31000 CE & 30000 PE. PCR of all strikes is 1.44, which indicates an overbought market. PCR at 30500 stands at 3.22, which is acting as an immediate support level.
The Put-call ratio at 31000 stands at 0.32, which is acting as a resistance level. Equally, important indicator Option Pain is at 30700, indicating weekly expiry at 30700. A shift in option pain will provide further levels.
If you don’t know how to analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty Weekly Option Strategy: Modified butterfly
Possible adjustments: If you find that Nifty gives a breakdown and sustaining below 30400, then square off 30800 CE & 31000 CE in profit, and short 30200 CE and convert it into a bear call spread.
Much Check this also- Bull Call Ladder in ZEEL, Iron Condor in SBIN, Weekly Analysis & Option Strategies For 10th Oct Exp, Why People Lose Money & Nifty and Bank nifty index analysis with Option Strategy
Post your comments in the comment box if you have a query related to the Weekly option strategy. You can ask any question related to options trading in the comment box.
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Options Strategies – A Mentorship Program
On the 1st of September, We have launched a new mentorship program for Option strategies, in which we’ll discuss how can we deploy these strategies? What rules we should follow before taking a trade? and what should be our adjustments if the script is moving against your direction?
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