Nifty Weekly Options Strategy for December 05, 2024 Expiry | Profitable Options Trading

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 05, 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 05, 2024 Expiry

Before we examine the weekly option strategy in depth, we need to analyse the overall trend and important levels of Nifty50.

After a gap-up opening on Monday Nifty managed to sustain above the 23800 level which was acting as the important resistance for a bearish trend.

Although we saw a sharp decline on Thursday but Nifty is still trading above 23800.

Now 23800 - 24000 is acting as the immediate support and 24300 - 24500 is acting as immediate resistance for the coming sessions.

The overall trend is down, but we can expect range-bound activity until the Nifty is trading between 24300 and 23800.

Further decline is only possible after a sustainable breakdown from 23800. So till it is trading in the above said range, a neutral approach is good.

Open Interest also indicates that max pain is at 2400. 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 05, 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 book 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.

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Below is the strategy that we shared on Friday and booked profit around 2% this week.

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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.