Weekly Analysis with weekly Option Strategies For 17th Oct Exp

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Hello guys, hope you all are doing good in your share trading. My weekly option strategies are helping or not? Please share in the comment box.

Last few weeks are very tough in terms of volatility. We saw huge volatility in the market specially in Ban nifty, where 1000 points movement in a day looks quite normal.

In this type of highly volatile market, as I always said in my every weekly option strategy post, your risk management will play a major role. Taking risk is ok but take that risk only which is worthy to take.

If you entre in a trade and if it’s looking difficult to come out from a loss-making trade after booking some loss, then something is wrong with your risk management.

See one thing we have to keep in mind that, We can learn only from our mistakes. Doing a mistake is not bad but not learning from these mistakes is the really bad thing which will create some serious problem for us in the near future.

One more mistake generally retail traders are doing. Read here

Now lets come to the market. This week we saw a very huge movement in the market. Although market is trading in a range, but the movement we are getting in a day is creating so many problems, especially for option writers.

The market is jumping like a monkey with a very huge movement. In this type of market most of the indicators and data points fail. So Better we should stay away for quite some time if we don’t know what is going in that market and how to handle it. Let’s look at the chart first.

Nifty Chart with weekly option Strategies

Nifty weekly chart

In this 10th October weekly expiry, Nifty open at 11388.45 made a high of 11400.30, low of 11090.15 and trading at 11267.50 (at the time when I was writing this post).

We saw almost 310 points swing in a single trading week. One day Nifty was going down and the second day it recovered from low and trading flat again.

If you look at the chart, you will find that the big candle we got on 09th October, Nifty is still trading in the range of that candle. For a short term basis, it is giving us a range to our weekly option strategies for reference.

You can see there is big support zone around 11150 – 11100, which is the last hope for Bulls. Nifty need to sustain above that zone to get some recovery. Right now there is no clear indication for any recovery, but as you know this is the best time to invest some good scripts for long term portfolio.

From next months I will share some scripts every month for your long term portfolio same as I’m sharing one strategy every week for stocks. Keep following this blog.

Nifty Option chain analysis

Nifty Weekly option chain

Based on option chain data, the highest Open interest stands at 11300 CE & 11200 PE, followed by 11500 CE & 11000 PE. PCR of all strikes is 0.94, which indicates a neutral market. PCR at 11100 stands at 6.60, which is acting as an immediate support level.

The Put-call ratio at 11400 stands at 0.22, which is acting as a resistance level. Equally, important indicator Option Pain is at 11300, indicating weekly expiry at 11300. A shift in option pain will provide further levels.

Significant open interest buildup on the put side, which indicates that the market is trying to take some support on lower levels. Based on Option chain data, 11200, 11100 & 11000 are good support levels for this expiry. Keep tracking open interest to analyse market participants behaviour.

If you don’t know how to analyze open interest. Just enrol for our Option Strategies – A Mentorship Program.

Nifty Option strategy: Iron Condor

Nifty Weekly Option Strategies

Possible adjustments: Shift Call spread to 100 points lower level after a successful breakdown from 11080. Shift Put spread to 100 points higher level after a successful breakout from 11425.

There are some more advanced adjustments you can do to increase your profit%. To learn these adjustments you can enrol in our Option Strategies – A Mentorship Program.

Bank Nifty Chart this week

Bank Nifty chart today

In 10th Oct weekly expiry, We saw huge volatility in Bank Nifty. The movement we are getting nowadays in Bank Nifty is creating trouble for most of the traders.

If you look at the chart, you will find, every day we are getting a big candle from last few weeks. Moment and volatility both are going out of control.

In this type of market, it’s very important to save your capital and don’t lose big. Most of the indicators and data points are not working. In this type of market, your risk management is the only holy grail. Just focus only on that.

I draw a Fibonacci retracement from recent high to the recent low. We find that 23.8% level is around 27800, which is acting as a barrier for a new upside rally.

If banknifty manage to sustain above this level, Chances are high that we may go till 38.2 % & 50%. You can keep a stop loss below 27500. I’m not giving any buy recommendation here, just sharing for those who are holding a long trade in bank nifty.

For a new position, I suggest we should wait for some more time. There is no clear indication on the chart to go long or short. Based on the current chart pattern range for next week is 27800 – 28500.

Bank Nifty option chain analysis

Bank nifty Open interest

Based on option chain data, the highest Open interest stands at 29000 CE & 27000 PE, followed by 29500 CE & 26500 PE. PCR of all strikes is 0.62, which indicates a slightly overbought market. PCR at 27500 stands at 10, which is acting as an immediate support level.

The Put-call ratio at 28500 stands at 0.31, which is acting as a resistance level. Equally, important indicator Option Pain is at 28100, indicating weekly expiry at 28100. A shift in option pain will provide further levels.

If you don’t know how to analyze open interest. Just enrol for our Option Strategies – A Mentorship Program.

Bank nifty weekly option strategy: Iron Condor

Bank Nifty weekly option strategy

Possible adjustments: Shift Call spread to 300 points lower level after a successful breakdown from 27600 and convert it into Iron Butterfly. Shift Put spread to 300 points higher level after a successful breakout from 28500.

Post your comments in the comment box if you have a query related to Weekly option strategies. You can ask any question related to options trading in the comment box.

If you need More real-time assistance on Nifty and Bank nifty weekly option strategies Can open a trading account with us and you will get real-time assistance on every month on these weekly option strategies. You can contact us on WhatsApp.


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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.

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