Weekly Options Strategies with 3 tips to be a better option trader

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Hello dear friend, I hope you are doing good. In every weekly newsletter, I’m sharing Nifty and BankNifty weekly options strategies along with some valuable suggestions one can follow to be a successful trader.

In today’s article, I’m sharing 3 valuable tips one can follow to manage their trading activity more efficiently. So read this article till the end to learn from the quotes by the 3 most successful traders and investors of this world.

3 tips to be a better option trader

You know options have a nature that all OTM option strikes become zero on expiry. That means the capital you are putting in that trade will be zero if your option remains OTM. So the first thing you should do is,

You should invest only a small portion of your capital.

bruce kovner quote

Bruce Kovner Says:  “Novice Traders trade 5 to 10 times too big. They are taking 5 to 10% risk, on a trade they should be taking 1 to 2% risk on.” 

That means you should not take a big risk on a single trade. The ideal risk per trade is 2% of your entire trading capital. For example, If I have a capital of 1 Lakh ₹, my risk per trade should not be more than 2000₹. 

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If you are following this, Your chances will be much high to stay here for the longer term. And if you stay on the pitch for the longer term, runs will come automatically. 

Follow your system with pepper discipline and patience. 

Michael Covel Quote

Michael Covel Says – “Never, ever argue with your trading system”

Every system has its own limitations. So if you are in the loss today that’s not mean that your system is not good enough. The everyday market is behaving in a different way. Some day I will make money and you lose and the next day I will lose and you make money.

So your first job is to build your system with your Risk management rules and then follow it blindly. If you follow your system, sooner or later you will get your reward.

Always calculate your risk first.

Peter Borish quote

Peter Borish says – “We want to perceive ourselves as winners, but successful traders are always focusing on their losses.”

Most traders are always fascinated about the profit but rarely calculate their risk. But if you want to be a successful trade and wanted to trade with proper risk management you much calculate your risk first.

If you are not calculating your risk, you are jumping in a well without knowing its depth. You can imagine how dangerous it is. So, calculate your risk first and then your reward, it will help manage your risk and improve your trade selection.

I hope these three tips will help to manage your trading activity more efficiently. If you have any query just type in the comment box. I will love to help in every possible way. You can follow on the below networks for more valuable content.

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Nifty weekly analysis and Weekly Options strategies

nifty chart today

After a huge rally in the market, we saw some profit booking in Nifty. In this decline, Nifty took support around 17500 and now trading in a range of 17700 – 18200.

Now above range looks like a make or break zone for Nifty. A Breakout will lead to upside levels and a breakdown will give new downside levels.

For the coming week, 17750 – 18150 is the zone you can keep on the radar. A Sustainable breakout from 18150 will again lead to the all-time high level i.e. 18600.

The overall trend is UP, and there is no sign of weakness. So we should only look at long opportunities. Do not trade based on the hope that the market is at the highest level, and now it will come down.

On the downside, 17700 & 17400 are acting as strong support levels now and a breakdown from 17400 will trigger a new sell signal.

Important Announcement: In the coming week, I will share some free options strategies for monthly income on the below networks. So follow me on these platforms to get timely updates and levels.

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Nifty weekly option chain analysis

nifty weekly open interest analysis

Based on option chain data available at the time of writing this post, the highest Open interest stands at 18000 CE & 17800 PE, followed by 18100 CE & 17000 PE. PCR of all strikes is 0.73, which indicates a neutral market. PCR at 17800 stands at 3.53, which is acting as an immediate support level.

The Put-call ratio at 18100 stands at 0.01, which is acting as a resistance level. Equally, important indicator Option Pain is at 17950, indicating weekly expiry at 17950. A shift in option pain will provide further levels of expiry. So keep tracking max pain.

Significant open interest buildup on both sides. Indicating good pressure from higher levels. So based on the OI, the possible range for this week should be 17800 – 18100.

Keep tracking change in open interest to analyze market participants’ behavior, so that you can adjust your position accordingly. If you don’t know how to do weekly analysis, find the best Weekly nifty and bank nifty weekly options strategies. Just enroll for our Option Strategies – A Mentorship Program.

Nifty Weekly options Strategies: Iron Condor

nifty weekly options strategies

Possible adjustments for Nifty options strategies:

Initially, you can keep a stop loss of 17700 & 18200 for this strategy. Means square off if you find nifty is giving a breakout or breakdown. Or you can do this adjustment too. ( Do not hold this strategy if the loss is more than 2000₹).

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If you find that Nifty is giving a breakdown and sustaining below 17700, 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 18200. You can shift your put spread to 400 points up.

If you want to learn how to do weekly analysis to find the Weekly nifty options strategies with adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program.

BankNifty weekly analysis and Weekly Options strategies

Banknifty chart today

After a good rally, we saw a sharp decline in BankNifty due to weakness in PSUBanks. After making a high of 29030.90, we saw some decline due to profit booking at a higher level. Now, BankNifty is trading near its support zone i.e. 38400 – 37700. If Banknifty manages to take support in this zone, we may see some upside levels again.

On the downside, 37700 to 36200 are the two important support levels for short to medium-term trends. The overall short-term trend looks weak, but BankNifty is already trading near its support zone. So I suggest we should wait for a clear buy or a sell signal to initiate a new trade.

Weekly Bank Nifty options chain analysis

banknifty weekly open interest

Based on Bank nifty option chain data, the highest Open interest stands at 39000 CE & 38500 PE, followed by 39500 CE & 38000 PE. PCR of all strikes is 0.62, which indicates a neutral zone. PCR at 38000 stands at 8.39, which is acting as an immediate support level.

The Put-call ratio at 39000 stands at 0.18, which is acting as a resistance level. Equally, important indicator Option Pain is at 38500, indicating weekly expiry at 38500. A shift in option pain will provide further levels.

If you don’t know how to do the weekly analysis to find your bank nifty weekly options strategies, Just enroll for our Option Strategies – A Mentorship Program.

BankNifty weekly options Strategies

weekly options strategies

Possible adjustments for Bank nifty weekly options strategies:

Possible adjustments for this best Bank Nifty weekly options Strategies are:

  1. Follow a stop-loss if the max loss is above 2000₹, close this strategy.
  2. If you find that Bank Nifty gives a breakdown and sustaining below 37700, 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 39300. You can shift your put spread to 1000 points up.

If you want to learn these bank nifty option strategies with adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program.

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

If you need More real-time assistance on how to find the Nifty and Bank nifty weekly options strategies, Can take our premium subscription or open a trading account with us and you will get real-time assistance every month on the weekly analysis with Nifty and bank nifty weekly options strategies. You can contact us on WhatsApp

*( Please avoid any questions like which Call or Put we should buy in the coming week).


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DISCLAIMER: – we are not a SEBI research analyst. Views or the weekly analysis with nifty and bank nifty weekly 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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Avatar of Sachin Sival

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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