Hello Guys, I hope you are doing good. I’m back with my Weekly Analysis with Option Strategies post for 28th November Expiry. Are these Weekly analysis with Options strategies post adding some value in your successful trading?
Nowadays you can see the market is trying to come back to its previous state. Volatility is almost settled down and rangebound activity is going on.
This type of market is very good for traders especially option writers. High Volatility brings new opportunities but keeping high risk too along with it. Nowadays you can see, there are stock-specific activities going on in the market.
Although we can see, Still Many concerns globally and domestic are also there but we saw some good value buying in some stocks which bring some relief in the market.
Indexes are trading at an all-time high but still, valuations are high. Nifty PE is trading at a high level of 27.89. Indicating very high valuations. Still, some big players like Reliance and Hdfcbank are pushing the index to higher levels.
Midcap and small calps stocks are not performing as per expectation. Once they will start contributing then only we can see a sustainable rally in the market. Till then a cautious note is there. I suggest, keep your positions with a proper hedge.
Hedging is like a insurance. It might cost you little but will protect you fully from any unexpected movement. Make a habit “Never carry any naked overnight position in F&O.”
Nifty Weekly Analysis with Option Strategies
In my Last weekly analysis with options strategies post, I shared that 12000 – 12100 is a very good resistance zone. Same you can see on the chart. Nifty is trying to go up but facing resistance around this level.
Last whole weekly expiry, nifty was traded in a tight range of 11900 – 12000. Here 11900 and then 11700 are acting as strong support levels. Need a proper breakdown from 11700 for a bearish view. We should initiate a sell trade only below 11700.
Right now the market is trading in a No-Trade zone. A breakout from 12100 and a breakdown from 11700 will generate a new entry signal. Till then trade with neutral strategies.
Nifty Option Chain analysis
Based on option chain data, the highest Open interest stands at 12000 CE & 11900 PE, followed by 11900 CE & 11500 PE. PCR of all strikes is 0.96, which indicates a neutral market. PCR at 11800 stands at 183, which is acting as an immediate support level.
The Put-call ratio at 12000 stands at 0.40, which is acting as a resistance level. Equally, important indicator Option Pain is at 11900, indicating weekly expiry at 11900. A shift in option pain will provide further levels.
Significant open interest buildup on the call sides, Especially 11900 CE, 11950 CE & 12000 CE, which indicates that the market is facing some Resistance around 12000. Based on Option chain data, 11800, 11700 are good support levels & 12000, 12100 are good resistance levels for this expiry.
Keep tracking open interest to analyze market participants’ behaviour. If you don’t know how to analyze open interest. Just enrol for our Option Strategies – A Mentorship Program.
Nifty Weekly Option Strategy: Condor
If you find that Nifty gives a breakdown and sustaining below 11700, then square off 11950 CE in profit, and short 11700 CE and convert it into a bear call spread.
If Breakout happens and Nifty is sustaining above 12100, Square off 11950 CE and short 12100 CE.
You can Learn these adjustments in our Option Strategies – A Mentorship Program.
Banknifty Weekly analysis with option strategies
You can see Banknifty is trading in a range of 30500 – 31500 from last few weeks. This whole week, Banknifty was range-bound in 31000 – 31500.
Right now banknifty is trading in no trade zone. A breakout or breakdown will give us a fresh buy/sell signal. Till then we should trade with neutral strategies only.
The overall trend is UP and there is no sign of weakness, so any short trade is also not advisable here. Those holding longs can hold with a stop loss of 30500. Now 30700 – 31700 seems like a range for a range-bound activity in BankNifty.
Bank Nifty option chain analysis
Based on option chain data, the highest Open interest stands at 31500 CE & 31000 PE, followed by 32000 CE & 30500 PE. PCR of all strikes is 0.89, which indicates a neutral market. PCR at 30500 stands at 2.22, which is acting as an immediate support level.
The Put-call ratio at 31500 stands at 0.12, which is acting as a resistance level. Equally, important indicator Option Pain is at 31100, indicating weekly expiry at 31100. A shift in option pain will provide further levels.
Open Interest analysis is very important. It will tell you where market participants are betting actually.
If you don’t know how to analyze open interest. Just enrol for our Option Strategies – A Mentorship Program.
Banknifty Weekly Option Strategies: Iron Condor
Shift call spread to 200 points down after a breakdown from 30700. Same shifty Put spread 200 points up after a breakout from 31500.
To learn the advanced adjustments, you can enrol to our Option Strategies – A Mentorship Program
Post your comments in the comment box if you have a query related to the Weekly option strategies. You can ask any question related to options trading in the comment box.
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DISCLAIMER: – we are not a SEBI research analyst. Views 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.