Weekly Analysis with weekly Option Strategy For 24th Oct Exp

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Hello guys, I hope you all are doing good. In my last weekly analysis with weekly option strategy post, I shared some precautions we should follow when volatility is very high in the market. I hope you all are following all suggestions and keeping your risk management on the higher side.

This week we saw some range bound activity in the market. Nifty and bank nifty both were traded in a range. The range was a little big because of a highly volatile market.

Option writers who are selling naked were struggling from the last few weeks. Some got lessons, some still need to learn from the market. See, why I’m saying this? Because I just want to tell you about the importance of risk management.

As result session is going on and heavyweight like HDFCBANK and Axis bank will declare results in the coming week, Volatility will be very high, so keep your positions with the proper hedge.

Nifty analysis and weekly option strategy

Nifty chart today

This is the daily chart of nifty. We witnessed a good rally after corporate tax relief by Finance minister. We saw some profit book on higher levels, which drag nifty to lower levels.

As I shared earlier, Nifty took support around 11100 and again started the upward journey. You can see around 11700 there is a very good resistance level. If Nifty manages to sustain above this level, then only we can see some higher levels.

As you know, result session is going on. Due to this volatility is high in the market and when volatility is high, a proven strategy required to make money. We are teaching this strategy in our Option Strategies – A mentorship program.

Now Nifty is standing at a very crucial level. A breakout from 11700 will lead to a new upside rally. Let’s look at the option chain data.

Nifty Option Chain analysis

Nifty Weekly Option chain analysis

Based on option chain data, the highest Open interest stands at 11700 CE & 11500 PE, followed by 11800 CE & 11600 PE. PCR of all strikes is 1.3, which indicates an overbought market. PCR at 11500 stands at 2.34, which is acting as an immediate support level.

The Put-call ratio at 11700 stands at 0.25, which is acting as a resistance level. Equally, important indicator Option Pain is at 11600, indicating weekly expiry at 11600. 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, 11600, 11500 & 11400 are good support levels for this expiry.

On the other hand, 11700 still carries a good Open interest which indicates a good resistance level. 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 Weekly Option Strategy: Iron Condor

Nifty Weekly Option Strategy

Possible adjustments: Shift Call spread to 100 points lower level after a successful breakdown from 11500. Shift Put spread to 100 points higher level after a successful breakout from 11800.

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 Analysis with Weekly Option Strategy

Bank Nifty Chart today

After taking support around 27800, which is also a 23.6% retracement level, Bank nifty gave a good recovery and kissed 50% retracement level on Friday.

You know 50% – 61.8% retracement level is acting as a reversal zone. Based on Fibonacci 29200 – 29800 is the reversal zone. In this zone, we should avoid any long or short positions.

Those holding longs can book here and wait for a clear breakout or breakdown. On the downside, I think Bank Nifty has formed a good support zone between 27800 -26600.

Bank Nifty option chain analysis

Bank Nifty Weekly Open Interest

Based on option chain data, the highest Open interest stands at 30000 CE & 28000 PE, followed by 29500 CE & 28500 PE. PCR of all strikes is 1.13, which indicates a slightly overbought market. PCR at 28500 stands at 6.21, which is acting as an immediate support level.

The Put-call ratio at 29500 stands at 0.08, which is acting as a resistance level. Equally, important indicator Option Pain is at 29000, indicating weekly expiry at 29000. 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 28400. Shift Put spread to 300 points higher level after a successful breakout from 29550.

Much Check this also- Iron Condor in SBIN, Weekly Analysis & Option Strategies For 10th Oct Exp, Why People Lose Money & Nifty and Bank nifty index analysis with Option Strategy

Post your comments in the comment box if you have a query related to Weekly option strategy. 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 strategy Can take our premium subscription or 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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