Bank Nifty Option Strategy for Budget Session in 2024

Sachin Sival

Jan 29, 2024 — 3 min read

Hello Friend, As we know the Budget Session is starting on 1st February 2024, so what should be your Bank Nifty Option strategy for the budget session?

Here I'm sharing one of the best strategy that I use for the known events like budget session.

Let’s Look at the Bank Nifty Chart first:

Bank Nifty Chart:

If we look at the Bank Nifty Chart, We can see that after a sharp decline, Bank Nifty took support near 44500 and now trading in a range.
44500 is a strong support level & 46120 is a strong resistance level. Breakout or breakdown from these levels will only lead to further levels.
If we get a breakdown from 44500 then we may expect some more downside till 43500. So this level should be considered as important level.
Breakout from 46120 will trigger a long signal that can lead to 47000. So keep these levels as a reference for the coming session.

Bank Nifty Option Chain

banknifty option intrerest chart ahead of budget session

Based on Bank Nifty option chain data, the highest open interest stands at 46000 CE & 45000 PE followed by 46500 CE & 44500 PE.
PCR of all strikes stands at 1 which is a neutral zone.
PCR at 45000 stands at 2.22, which is acting an immediate support zone. PCR at 46000 stands at 0.02 which is acting as an immediate resistance zone.
Option pain stands at 45500, giving us an expiry level. Keep tracking this option pain levels. A shift in option pain will give us a new level for expiry.

Bank Nifty Option Strategy for budget session: Calendar spread

We are going with a Calendar spread strategy, the reason we want to keep our Vega & theta Long. High liquidity and low theta decay are the Reasons to take the February 29th expiry. The strategy needs to square off on February 07, 2024. It’s a weekly options strategy.

Possible adjustments :

If we get a breakdown from 44200 then Book profit in Call Spread and shift 300 points below this level, which means the new position will be Sell 45200 CE February 07 Expiry & buy 45200 CE -February 29, expiry. The same has to do with PUT Spread after a breakout from 47400.

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