Hey Folks! I hope you all are safe and healthy in this COVID-19 pandemic. Every week I’m sharing Weekly Option Strategies in Nifty and bank nifty for coming expiry.
Normally, We are creating these strategies on Friday. But due to a trading holiday on Friday last week, I avoid any fresh strategy.
Normally I avoid Weekly Option Strategies on Thursday. Reason is simple. We need to analyze data to find the range for the expiry and on Friday we are getting that proper data.
On Thursday, we got the price movement because of the weekly expiry activities. And because of these activities, somewhere we didn’t get that clear picture we need to finalize our weekly option strategies of the next week expiry.
So I prefer to wait for the next day to get that option chain data.
That’s the reason I prefer to wait for Monday to initiate Nifty and Bank Nifty weekly option strategies for 08th October 2020 expiry. So let’s start with these weekly option strategies in Nifty and Bank Nifty.
Nifty Weekly Option Strategies for 08th October Expiry
After made a low of 10790.20 on 24th September 2020 we saw a sharp recovery from lower levels. As I have shared in the last weekly article that 10800 – 11000 is the strong support zone and Nifty needs to sustain below for further downside levels.
Nifty did exactly what I have shared. Took support at given zone and gave a sharp recovery. Now 11600 – 11800 is the resistance that need to break for further upside levels.
After a successful breakout, next targets can be 12000 & 12250.
On the downside, 10800 – 11000 is the strong support zone and a sustainable breakdown required for a new sell signal.
My tip for you: Market always trades against the noise. Whenever you saw all the giving downside target, it’s time to hedge your downside positions. And whenever you see that all are shouting for a new high, time to book the profit in your long positions.
Nifty weekly option chain analysis
Based on option chain data, the highest Open interest stands at 11500 CE & 11400 PE, followed by 11600 CE & 11500 PE. PCR of all strikes is 1.11, which indicates a neutral market. PCR at 11400 stands at 2.12, which is acting as an immediate support level.
The Put-call ratio at 11600 stands at 0.19, which is acting as a resistance level. Equally, important indicator Option Pain is at 11500, indicating weekly expiry at 11500. A shift in option pain will provide further levels of expiry. So keep tracking max pain.
Significant open interest buildup on PUT sides. Indicating good support from lower levels. So based on the OI, the possible range for this week should be 11400 – 11600.
Keep tracking change in open interest to analyze market participant’s behaviour, so that you can adjust your position accordingly. If you don’t know how to analyze open interest fo find the best weekly option strategies in nifty and bank nifty. Just enrol for our Option Strategies – A Mentorship Program.
Nifty weekly option Strategies: Iron Condor
Initially, you can keep a stop loss of 11350 & 11750 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 1500₹).
If you find that Nifty is giving a breakdown and sustaining below 11350, 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 11750. You can shift your put spread to 300 points up.
If you want to learn how to find the best nifty and bank nifty weekly option strategies and its adjustments in more practical ways with live mentorship, You can enrol in our Option Strategies – A Mentorship Program.
BankNifty Weekly Option Strategies for 08th October Expiry
I have shared in the last weekly newsletter, that 21000 – 20000 is the strong and crucial support level and I personally believe that Banknifty should respect this level.
BankNifty behave exactly what I have shared, and we saw a sharp recovery from lower levels.
Now, 23000 – 23200 is the resistance level for Bank nifty. A breakout will give us 24000 as a target. On the downside 21000 – 20000 is acting as a strong support zone and new sell signal will trigger only after a sustainable breakdown from this zone.
Now 21000 – 23200 is the range until we are not getting any breakout or breakdown from the above zones.
BankNifty weekly option chain analysis
Based on Bank nifty option chain data, the highest Open interest stands at 23000 CE & 22000 PE, followed by 23500 CE & 21500 PE. PCR of all strikes is 1.02, which indicates a neutral zone. PCR at 22000 stands at 4.84, which is acting as an immediate support level.
The Put-call ratio at 23000 stands at 0.12, which is acting as a resistance level. Equally, important indicator Option Pain is at 22500, indicating weekly expiry at 22500. A shift in option pain will provide further levels.
If you don’t know how to do the bank nifty weekly options chain analysis to find your banknifty weekly option strategies, Just enroll for our Option Strategies – A Mentorship Program.
BankNifty option Strategy: Iron Condor
Possible adjustments for this best banknifty weekly option strategies are:
If you find that BankNifty gives a breakdown and sustaining below 22100, then shift your Call spread to 800 points down.
The same thing you can do with put spread means if you got a breakout from 23300. You can shift your put spread to 800 points up.
If you want to learn this bank nifty weekly options strategies and its adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(33% OFF).
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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 weekly analysis with nifty and bank nifty weekly option 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.