Hello guys, I hope you all are doing good. In this weekly analysis and Weekly options strategies post, I’m trying to share my analysis and experience along with one weekly expiry options strategy in Nifty and Banknifty.
So I request you to follow our website to get my options strategies every week. I’m sharing some options strategies in stocks too, which are giving very good results so far. Click here to watch the performance.
This week Nifty was traded almost in a tight range of 150 points. Although the trend is Up but right now the market is in the No-trade zone.
Although the market is trading near to its all-time high. What you think about how expensive are market now in terms of valuations?
The market capitalization to GDP ratio, which is also known as Buffett indicator, is at 78.10, which is the lowest in the last 4 years considering advanced GDP and very far away from it’s high 140 in December 2007.
If I say in simple words, still we have the potential to reach new highs in 2020. So from here, every downside movement should be our buying opportunity. Keep adding some fundamentally strong stocks in your medium to long term portfolios.
- 1 Nifty weekly expiry with options strategies
- 2 BankNifty Weekly Analysis with option strategies
- 3 Looking for the Best strategy for Bank Nifty Future?
- 4 Options Strategies – A Mentorship Program
Nifty weekly expiry with options strategies
As I shared in my last weekly analysis and options strategies post, 12300 – 12000 is the range which is acting as a no-trade zone. A new buy or sell signal will come after a breakout or breakdown.
The overall trend is UP. Here buy-on-dips should be our strategy. On the downside 11800 is a very crucial level in terms of trend. If nifty manages to sustain below this level, it will come again in a downtrend.
A new long trade should be above 12300 only. Till then trade with non-directional option strategies.
Nifty weekly Options Chain analysis
Based on option chain data, the highest Open interest stands at 12200 CE & 12100 PE, followed by 12300 CE & 12000 PE. PCR of all strikes is 0.81, which indicates a neutral market. PCR at 12100 stands at 2.48, which is acting as an immediate support level.
The Put-call ratio at 12200 stands at 0.45, which is acting as a resistance level. Equally, important indicator Option Pain is at 12150, indicating weekly expiry at 12150. A shift in option pain will provide further levels.
Significant open interest buildup on the call side, Especially 12200 CE, 12250 CE and 12300 CE which indicates that the market is facing some resistance from high levels. Based on Option chain data, 12100, 12000 are good support levels and 12200 & 12300 are good resistance levels for this expiry.
Keep tracking open interest to analyze market participant’s behavior. If you don’t know how to analyze open interest for weekly options strategies. Just enroll for our Option Strategies – A Mentorship Program.
Nifty Options Strategy: Iron Condor
Initially, you can keep a stop loss of 12050 & 12300 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 12050 then square off 12250 CE & 12350 CE in profit, and short 12100 CE and buy 12200 CE.
The same thing you can do with put spread means if you got a breakout from 12350. You can shift your put spread to 150 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.
BankNifty Weekly Analysis with option strategies
On Friday, when SC slams telecom companies for holding payments, we saw a huge selloff in most of the banking stocks and Banknifty slip below 31000.
Now on downside 30500 is the last hope for bulls, below 30500, the trend will reverse and BankNifty will be in a downtrend. So keep your long trades with proper stop loss.
On the Upside, above 31600 you can initiate a new long trade with a stop loss of 31000. Right now volatility is high in Banknifty to trade accordingly. As per the charts, 31500 – 30500 could be the range for the coming week.
Bank Nifty Weekly options chain analysis
Based on option chain data, the highest Open interest stands at 31500 CE & 30500 PE, followed by 31600 CE & 31000 PE. PCR of all strikes is 0.63, which indicates a slightly oversold market. PCR at 30500 stands at 10, which is acting as an immediate support level.
The Put-call ratio at 31500 stands at 0.13, which is acting as a resistance level. Equally, important indicator Option Pain is at 31000, indicating weekly expiry at 31000. 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.
BankNifty Weekly Options Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustaining below 30600, then Shift your Call spread to 300 points down.
The same thing you can do with put spread means if you got a breakout from 31400. You can shift your put spread to 300 points up.
If you want to learn these Weekly expiry option strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program.
Much Check this also–Chicken Iron Condor option strategy in YESBANK, Best Option strategy for a sideways movement in PNB, Nifty and Bank nifty index analysis with Option Strategy A high probability options strategy in YESBANK, Nifty & BankNifty Weekly Analysis with Option strategy for 2nd Jan Exp, Nifty & BankNifty Weekly Analysis with Option strategy for 26th Dec Exp, Weekly Analysis for 9th Jan Exp, Weekly Analysis for 12th Dec Exp
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*( Please avoid any question like which Call or Put we should buy in the coming week).
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Options Strategies – A Mentorship Program
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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.
8+ Years working as a derivative trader, Option Writer, Blogger, Trader by passion, Keen Follower of Indian share market