Nowadays, the market is unpredictable. Every day we can see wild moves in both directions. In the first half, the market is giving us an upside movement and looks like that trend is complete UP. We are getting the same move in the second half too, but the direction is opposite. In this weekly analysis options strategies post, let’s talk about how we can deal with this type of situation.
In these wild movements, one thing you can see that despite these movements, we are not going anywhere. The market is trading in a range only. When the market is trading in a range, you will get many whipsaws in any or every strategy. At this time, the most important thing is, “How do you keep yourself calm to make a better decision?”
If your decisions are coming from your emotions, emotions like “Fear or Greed,” then it’s a dangerous thing, especially for a retail trader. You should work and develop a system which can help to keep yourself calm in every situation.
Now you have two options. It would be best if you taught yourself how to handle your emotions or create a system that can help keep yourself calm in any situation. I prefer easy one i.e, create a system that can help to keep yourself away from any emotional decision. Now the question is:
How to create that system?
As per my experience, We will find ourselves trapped in emotions only if we are getting something unexpected. Like an unexpected profit or a sudden loss. So if we manage to create a system which can help to keep our risk and reward on the limited side, Than our 50% work will be done.
Rest 50% is to follow and implement that system with proper discipline. This is the crucial part which you have to teach yourself. In starting, it may look a little tight because you don’t have that experience, but once you start following and gain some experience, you will get your confidence back, and things will become smooth for you. Now you will ask:
Do we need to need to create a new or unique system for ourselves?
NO, We don’t need to create any new or unique system for ourselves. We already have. We have “Non-Directional Limited Risk Options Strategies.” Options strategies like Iron Condor, Butterflies, etc. These strategies not only help to keep your risk on the limited side but will also generate some consistent return without any worry about a gap-up or gap-down opening in this highly volatile market. Like the market, we can see nowadays.
My reasons to follow and trade with these strategies are simple. I don’t want to spoil my quality time with my kids because tomorrow’s market may gap-up or gap-down due to any global or domestic news.
I don’t want to spend the whole night looking at my phone screen to track SGX-Nifty because it is behaving unexpectedly.
We all want a stress free life. A Stress-Free experience is only possible when you know how much max loss you can get if tomorrow’s market open gap-up or gap-down by 20%++. I know the probability is very low in such events, but why take a risk when you have responsibilities. After all, we all are trading to generate some extra income to fulfill our obligations.
I hope now you understand; it’s more important that we need a system that not only helps us to generate some consistent return but should help to keep our risk on the limited side to protect our capital. And these “Non-directional Limited risk strategies” are working very correctly.
So I suggest you should start learning and implement these strategies, especially in this highly volatile market. We, too, have a unique Option Strategies – A Mentorship Program where you can learn and implement these strategies with my live mentorship. I will be there to help and solve all your queries related to options strategies.
Nifty weekly analysis with options strategies
As I have shared in the last weekly analysis post that 9650 – 8950 is the no-trade zone. Nifty should give a breakout or breakdown from this range for further levels. This week, we saw that nifty gave a breakout and trying to sustain below 8950 but couldn’t succeed.
As we know, the overall trend is Down, so any upside movement here should be sold on selling opportunity. As per the current setup, a breakdown from 8800 should be a sell signal for a weekly trade. You can keep a stop loss of 9300, and targets should be 8500 and 8050.
A new long trade must be only valid if nifty is sustaining above 9650. Nowadays, the market is highly volatile, so trade with limited risk only.
Nifty weekly Options Chain analysis
Based on option chain data, the highest Open interest stands at 9500 CE & 9000 PE, followed by 1000 CE & 8500 PE. PCR of all strikes is 0.97, which indicates a neutral market. PCR at 8800 stands at 10, which is acting as an immediate support level.
The Put-call ratio at 9200 stands at 0.26, which is acting as a resistance level. Equally, important indicator Option Pain is at 9050, indicating weekly expiry at 9050. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on both the side, which indicates that the market is facing support from both the side. So as per the weekly analysis and Open Interest data
- support 2 = 8500,
- Support 1 = 8800,
- Resistance 1 = 9200 and
- Resistance 2 = 9500
Keep tracking open interest to analyze market participant’s behavior. 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 Options Strategy: Iron Condor
Initially, you can keep a stop loss of 9550 & 8950 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 8950, 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 9550. You can shift your put spread to 300 points up.
BankNifty Weekly Analysis with options strategy
In my last weekly analysis post, I have shared that bank nifty is complete downtrend and a good idea to take a short trade. We saw this week, Bank Nifty had hit our first target of 17500 and heading towards 16000.
What you think, Banknifty will take support around 16000? This level is very crucial in terms of sentiments. A breakdown will attract more negative sentiments and we may see some more downside levels with a sharp downside movement.
This is the best time to think about hedging. Protection of your portfolios is more important than anything else right now.
Bank Nifty Weekly options chain analysis
Based on option chain data, the highest Open interest stands at 18000 CE & 17000 PE, followed by 19000 CE & 16000 PE. PCR of all strikes is 0.58, which indicates a slightly oversold market. PCR at 16500 stands at 10+, which is acting as an immediate support level.
The Put-call ratio at 18000 stands at 0.17, which is acting as a resistance level. Equally, important indicator Option Pain is at 117500, indicating weekly expiry at 17500. 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 analyze open interest. Just enroll for our Option Strategies – A Mentorship Program.
Bank Nifty best Weekly Options Strategy: Iron Condor
If you find that BankNifty gives a breakdown and sustaining below 16200, 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 17900. You can shift your put spread to 1000 points up.
If you want to learn these Weekly expiry options strategies and their adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program(33% OFF).
Much Check this also– Performance of the Option strategies, Nifty & BankNifty Weekly Analysis with Option strategy, Nifty Option Strategy for Budget Session, A low-risk options strategy in LICHSGFIN, An iron condor options strategy in ICICIBANK, Reverse Jade Lizard options strategy in UPL, A high probability options strategy in YESBANK
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DISCLAIMER: – we are not a SEBI research analyst. Weekly analysis, Views or the 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.