BankNifty Option Hedging Strategies for January 17, 2024

Hello Guys. I hope you are doing good. Today in the post I will share the BankNifty option hedging strategy for the coming weekly expiry i.e. January 17, 2024.

Normally, we created these weekly option Strategies in Nifty and BankNifty on Friday but when the weekly expiry of BankNifty shifted to Wednesday, I started creating these BankNifty positional option strategies on Thursday.

To create these strategies, I try to find the trend based on charts and open interest data.

So let's look at the chart and try to find the important levels of BankNifty for the coming week.

Weekly Trend and Important levels for the coming week

If you look at the chart, you will find the after made a all time high, BankNifty is trading in a range of 46800 to 48200.

Now this range is important till we are not getting any breakout or breakdown from this range.

As per the open chain data, strong support and resistance are 47000 & 48200 respectively.

So we can use this range to create our BankNifty option hedging strategy for the coming week.

BankNifty Option Hedging Strategy for January 17, 2024

Here is the advanced strategy for the coming week:

Before you enter this strategy, few things you should keep in mind.

• It's a high-risk and high-probability strategy. So do not enter if you are new and don't know the basics of option pricing.
• Because of the high risk, you would have to monitor it closely. So act accordingly.

The reason to choose this strategy is: the nature of this strategy. A high range can help to absorb high fluctuations in the price.

If BankNifty gave a breakout or Breakdown from the breakevens, we need to make certain adjustments.

To teach this and a few other option hedging strategies for weekly expiry with adjustments, I have created a small course. You can enrol in this course to learn this strategy with adjustments.

I hope this strategy and the post I'm sharing on my blog will help you to bring some positive change in your options trading.

Please leave your feedback, queries or suggestions in the comments box.

Have a profitable trading!

DISCLAIMER: – we are not a SEBI research analyst. Weekly analysis, Views, or options strategies are 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.