Options trading is a complex yet rewarding financial instrument that allows traders to profit from market movements without directly owning underlying assets. However, success in options trading hinges on a well-defined strategy. With the December 26, 2024 expiry approaching, the Nifty 50 index presents a dynamic landscape for traders.
In this blog post, we will delve into a proven weekly options strategy designed to capitalize on the potential volatility of the Nifty 50. By understanding the current market conditions, identifying key support and resistance levels, and implementing a disciplined approach, traders can significantly enhance their chances of achieving profitable outcomes.
Nifty Weekly Options Strategy for December 26, 2024 Expiry
Before we examine the weekly option strategy in depth, we need to analyse the overall trend and important levels of Nifty50.
We have seen a sharp decline from higher levels in this highly volatile week. Now 24750 is acting as a strong resistance and 23800 is acting as a strong support level.
If Nifty manage to sustain below 23800 then only we can expect some more decline till 23300.
The overall trend looks neutral because Nifty is trading between a range of 23800 - 24750.
So by looking at the chart, we can create a delta-neutral strategy to utilise this range-bound acting for this monthly expiry of Nifty.
At the time I'm writing this article, Open Interest also indicates that max pain is at 24000. Immediate support is at 23800 and 24300 is acting as immediate resistance based on the PCR.
By following these levels we can create a range-bound strategy.
Nifty Weekly Options Strategy for December 26, 2024 Expiry
Below is the weekly option strategy based on the levels, mentioned above.
I'm keeping a very nominal risk for it.
Adjustments for Nifty Weekly Option Strategy
I prefer to keep my trading setup very simple. So as my adjustments too.
If Nifty goes below and I find the premium of our bought Call went below 80%. We will square-off the bought call and bring it down to 24100.
Same as for the Put side. This means If Nifty goes UP, we will bring out bought PE to 23900 from 23750.
The idea is to reduce the spread and convert it into a no-loss option strategy.
If you want to learn and get the adjustments on realtime basis, can upgrade your subscription and join our premium telegram channel.
Please note: As you know that lot has changed after the weekly removal of other indices. So focusing only one strategy or indices looks difficult to make a more stable MTM. So I'm for using on a basket of weekly + Monthly expiries including stocks and Indices.
All the strategies including Realtime adjustments, I'm sharing in my premium channel. You can join through below link.
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Below is the strategy that we shared on Friday and we booked a profit of around 3.5% this week.
We have shared other strategies with real-time adjustments in our premium telegram channel. You can upgrade our subscription by joining this community.
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Disclaimer: This analysis is purely for informational purposes and does not constitute investment advice. Trading involves risk, and you should always conduct your own research and consult with a financial advisor before making any investment decisions.
