Hello folks! How’s your trading going? Hope you are safe and healthy in this COVID-19 pandemic. Every week, I’m sharing one option selling strategies for nifty and bank nifty to help our fellow traders.
These strategies are giving a decent return without any unnecessary noise. I’m getting good feedback too. Some are following as a free resource to get a strategy (tips), and some are following as a new opportunity to learn.
I respect both the traders and thank you for giving me your attention. It’s the best reward I can get. But as I’m saying in every weekly newsletter, I believe in learning. We should keep more and more focus on learning because your learning is the only mentor who will help you throughout your entire life.
These free tips can give you short term gains, but for long term survival, you need a proper understanding of what you are doing. So instead of just following, try to understand the logic behind every strategy. If you need any help from my side, I’m always there. Just ask your query in the comment box, and I will be very happy to solve all your queries.
But you have to put your first step. Take an action today to get benefits in the future. I’m getting so many queries that “I’m following market from 20/30 years but still waiting for some return from the market. What to do?”
I believe we are not following the market; we are just following or spending time to find some good free tips. If we see someone is making good money and sharing screenshots every day, we start following. We expect that he/she will share some inside information (which we don’t know) and we will make millions from it.
We think that we need just one trade to make lakhs. We keep searching for that one free advice, but the harsh reality is: there is no shortcut to being a successful trader. If you want to go to heaven, you have to die first.
Everyone is sharing their knowledge here. It’s up to us, what we want to take from it? Are we learning from them or just looking for some magic trick that may work this time?
I don’t want to discourage you, just wanted to tell that whatever action we are taking today, will get the results in future. So take a step which can help to build a better future for you. Spend more and more time on learning and implementing. Find a good mentor who can guide you in more practical ways. Who can assist you from his own experience?
If you need any help or having any query, session or feedback, type in the comment box and I will love to answer all your questions.
Weekly analysis with Nifty option selling strategies
As i have shared in the last weekly analysis and option selling strategies post that there is a good resistance zone around 11250 – 11450. Same thing we saw this week. Nifty was trading range-bound till weekly expiry. On friday we saw a sharp decline in Nifty and made a low of 11111.45.
Although Trend is UP but a breakout from 11450 – 11550 will only give us a new buy signal. Till then no trade zone.
On the downside, 11000 is acting as a strong support zone and a breakdown will give us a new sell signal. Based on the charts, I’m expecting that Nifty will remain in a range of 11500 – 11000 from the coming expiry. Let us look at the Option chain data too.
Open interest analysis for Nifty option selling strategies
Based on option chain data, the highest Open interest stands at 11300 CE & 11000 PE, followed by 11500 CE & 10800 PE. PCR of all strikes is 0.75, which indicates a neutral market. PCR at 11000 stands at 10+, which is acting as an immediate support level.
The Put-call ratio at 11300 stands at 0.28, which is acting as a resistance level. Equally, important indicator Option Pain is at 11200, indicating weekly expiry at 11200. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on both sides. Indicating that Nifty is facing good support from both the side and expecting to be in a range only. So based on the OI, the possible range for this week should be 11000 – 11400.
Keep tracking change in 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 nifty and bank nifty option selling strategies. Just enroll for our Option Strategies – A Mentorship Program.
Nifty option Strategy: Iron Condor
Nifty Strategy for Monday
Initially, you can keep a stop loss of 11000 & 11500 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 is loss is more than 2400₹).
If you find that Nifty is giving a breakdown and sustaining below 11000, 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 11500. You can shift your put spread to 300 points up.
If you want to learn these Nifty and BankNifty option strategy and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program (Last chance to get 33% OFF).
Weekly analysis with banknifty option selling strategies
After made a high of 23211.35 on 22nd July 2020, We saw some profit booking in Banknifty which drag Banknifty below 22500. Right now BankNifty is trading in a no trade zone.
Over the trend is UP but on the downside, 21000 is acting as a strong support level here. A breakdown will give us a new sell signal in Banknifty. So If you are holding a long trade, keep your risk management on the higher side.
Based the Fibonacci Retracement tool. 23000 is the 38.2% level which is very crucial for the further upside levels. A successful breakout will give us a good opportunity to go long for a target of 50% level i.e 24500 on the UPside. Here 22500 – 23000 is acting as a strong resistance zone which need to break for further upside levels.
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Banknifty Open interest analysis for option selling strategies
Based on Bank nifty option chain data, the highest Open interest stands at 22500 CE & 215000 PE, followed by 23000 CE & 20500 PE. PCR of all strikes is 0.69, which indicates a neutral market. PCR at 21500 stands at 2.63, which is acting as an immediate support level.
The Put-call ratio at 22500 stands at 0.13, which is acting as a resistance level. Equally, important indicator Option Pain is at 21900, indicating weekly expiry at 21900. A shift in option pain will provide further levels.
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
Strategy for Monday:
If you find that BankNifty gives a breakdown and sustaining below 21300, 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 22500. You can shift your put spread to 1000 points up.
If you want to learn these bank nifty weekly options strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(33% OFF).
Post your comments in the comment box if you have a query related to the Nifty and BankNifty option selling strategies. You can ask any question related to option trading in the comment box.
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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 banknifty option selling 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.