Every time someone asked me about my recommendation for any particular stock, I just requested one thing to them. Have you done your proper calculation before entre into this trade? Like why you took this trade? Or What should be the max risk you are willing to take with this trade? In this Nifty and Bank Nifty weekly expiry strategy post, We will discuss why it is essential to do proper calculation before entre into a trade?
The most common question we are getting is: I took this trade at 320₹, and now it is trading at 280₹. What should I do? As per my knowledge and experience, I feel no one can give you the answer except you. Because only you know how much you can effort to lose in a particular trade.
Successful trading is not just about placing the right trade; It’s all about how you are managing your wrong trade. Because if you can manage your wrong trades that means you know what you are doing and how to handle things.
Because wrong trades are the ones that will test your knowledge, experience, and behavior. If you come out successfully without losing much from a wrong trade, that means now you are on the right track.
People are trading based on their gut feeling. They are taking trades based on someone’s advice. They are not calculating the risk associated with that trade. They are taking trades based on the hope that this trade will work. That’s the reason when a trade goes against their expectations, they start a panic.
Stock trading is a business. If you want to be a successful trader, You have to do it in a proper way. You can’t just take a random trade with a thought that this trade will work.
For a small job, we are studying 25 years. But here in stock trading, we don’t want to give 25 days to learn and next 25 days to implement. Everyone wants a quick return.
If someone shared a strategy or a trade, why we are not analyzing that Is this trade fits in my risk management rules? Now how can we prepare ourselves for any unexpected movement?
Before entre into a trade, we should follow few things:
- Pick one segment or product and trade only in that segment. Don’t change it every day.
- Every time you want to take a trade, Calculate the risk first. Ask yourself “Can you afford to lose that amount?”
- Every Plan should be ready like what should be your stop-loss and target? If stop-loss hit come out as quickly as you can.
- If you want to take some advice from someone, ask him before entre into a trade. Don’t change your decisions in between the trade.
One thing we should always keep in mind that, Target is not in our hands. Only stop-loss is. So we have to keep more focus on the things which are in our hands like entry and Stop-loss.
If you do these calculations before entre into a trade, you will find that your trading is more systematic now. And if you trade systematically, chances are high to make decent money from this market.
Now’ it’s your turn. Make a promise to yourself that soon you will do proper calculation before entre in a trade. If you need any help from my side, just ask me in the comment box I will love to answer all your queries.
If you want to learn and trade with me with proper handholding support for Options hedging strategies, can enroll in our Option Strategies – A Mentorship program
Nifty weekly expiry strategy analysis
As I share in the last Nifty and Bank nifty weekly expiry strategy post that 10330 – 10570 is the strong resistance zone and Nifty should give a breakout for further upside levels. Breakout from 10570 will give us a new BUY signal.
This week due to the Monthly expiry of JUNE we saw some profit booking on the higher side and nifty was trading in a range of 10000 – 10500.
As per the chart, Nifty is making higher-Highs and Higher-Lows, indicating that trend is UP until we are not getting a breakdown from the rising trendline touching HL (higher-lows).
On the downside, 10000 – 9750 is the range which is acting as an strong support zone. A breakdown will give us a SELL signal again.
So these are the levels we should keep in mind:
- Breakout from 10570 = BUY,
- Breakdown from 9750 = SELL
- Trading between 10570 – 9750 = Range-bound
Nifty Weekly expiry option chain analysis
Based on option chain data, the highest Open interest stands at 10500 CE & 10000 PE, followed by 11000 CE & 10300 PE. PCR of all strikes is 0.85, which indicates a neutral market. PCR at 10000 stands at 8.19, which is acting as an immediate support level.
The Put-call ratio at 10500 stands at 0.1, which is acting as a resistance level. Equally, important indicator Option Pain is at 10300, indicating weekly expiry at 10300. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on both sides from 10000 to 10500. Indicating that Nifty is facing good support around 10000 levels and resistance around 10500 levels. So based on the OI, the possible range for this week should be 10000 – 10500.
Keep tracking open interest to analyze market participant’s behavior, so that you can adjust your position accordingly. 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 expiry Strategy: Iron Condor
Initially, you can keep a stop loss of 10150 & 10650 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 10150, 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 10650. You can shift your put spread to 300 points up.
If you want to learn these Nifty and BankNifty weekly option strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(33% OFF).
Bank Nifty Weekly expiry strategy
Last week i have shared that 22500 is the strong resistance level for banknifty, if we get a breakout Bank Nifty may hit next upside level which is at 24300.
This week banknifty took resistance axact at 22500 and we saw some profit book from higher levels. Now Banknifty is trading in a range and we are waiting for a clear BUY or SELL signal.
On the lower side, 20500 – 20000 is acting as a strong support zone. A breakdown from 20000 will lead to the next support level at 18000.
As per the current chart, the range for this week should be 20500 – 22500. You can create a strategy based on this range.
Bank Nifty weekly expiry option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 23000 CE & 20000 PE, followed by 22500 CE & 20500 PE. PCR of all strikes is 0.79, which indicates a neutral market. PCR at 20500 stands at 10, which is acting as an immediate support level.
The Put-call ratio at 22000 stands at 0.11, which is acting as a resistance level. Equally, important indicator Option Pain is at 21500, indicating weekly expiry at 21500. 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 do the banknifty weekly option chain analysis, Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty weekly expiry Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustaining below 20200, 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 22200. You can shift your put spread to 1000 points up.
If you want to learn these bank nifty weekly expiry strategy and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(33% OFF).
Much Check this also–
- How to Trade Options? 2 best options strategies for beginners
- Performance of the Option strategies
- Follow a long-term sustainable strategy
- A low-risk options strategy in LICHSGFIN
- A high probability option strategy in AXISBANK
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*( Please avoid any question 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 nifty and bank nifty weekly expiry strategy 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.