weekly analysis | weekly option strategies

Weekly Analysis | Nifty and Bank nifty weekly options strategy | June 01 weekly Expiry

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Hey Folks! In this bank nifty weekly options strategy post, we will analyze Nifty50 and Bank Nifty based on technical analysis and option chain data. I have shared one weekly options strategy for each index at the bottom of this post.

In every weekly analysis post, I’m taking a common problem and trying to share a possible solution for that particular problem. So read this post till the end to find all the answers you are looking for.

Somewhere we both know that successful trading is not rocket science. Anyone can learn to be a successful trader. But from where? Nowadays you have so many resources like social media channels, where you can discover tricks and techniques, But which one to follow?

You know how these things, tricks, or techniques work, But the real problems start when you start implementing. The results you are getting, are different. You follow the same method or steps you have learned, but the results are not as per the expectations. Are you doing something wrong?

No, You are doing exactly what you have learned. You are coping with every single step you have learned from someone. Wait! Did you read it right? Take a pause and read again what I have written in the previous lines.

I said you are coping. Yes, you are copying as it is. Why I’m saying this? We all know that every person has a different mindset and different psychology. When the mindset and psychology are different, how can results be the same?

Let’s say we both, you and me, are doing the same thing, but my risk-taking capacity is different from yours. Let’s say I can take the risk of 2%, but for you, 1% is more than enough. I’m trading based on my risk appetite if you follow me and try to copy what I’m doing, somewhere you are panicking when you saw your loss is more than 1%.

So what you have to do is, learn from various sources and then optimize it based on your mindset, psychology, and risk appetite. Instead of just following a strategy, you should learn the basics of that strategy. And when you know the basics of that strategy, you can optimize it very easily.

Like, You know that Iron Condor is a limited risk strategy. It’s a basic strategy, and you can create by selling one OTM Call & OTM Put and buying further OTM Call & Put. You will get profit if your script expires in a range, that happens most of the time.

But instead of just deploying this strategy, you have to understand why you are making money in that particular range. Which strike to buy and sell? What factors (Like premium, greeks, IV, etc.) help make money in that specific range?

If you know the basics of that particular strategy, you can easily optimize it based on your risk appetite, and if the script is moving against your prediction, you can easily manage and can do timely adjustments for that trade too. Trade management is essential. Because placing a strategy is just one part, you will get your return from how well you are managing your trade.

So instead of just copying someone, try to understand the basics, logic, and the factors behind that trade and optimize it based on your risk appetite. Every successful trader is doing the same. Even I, too, did the same. I learned some strategies from one mentor and some strategies from another mentor. I optimize all the strategies based on my risk appetite, and the results are mind-blowing.

So initially, focus on basics and then try advanced things. If you know the basics of a particular strategy, you can easily manage the trade. And if you can manage that well, you will get your desirable return.

The same thing we are teaching in our Options strategies – A Mentorship Program, We are not just telling you the basic theory, we are providing handholding support in the real market so that you can optimize your strategy and can learn how to manage a trade well. For more details “Hit the below button

Nifty weekly analysis with Weekly options strategy

nifty chart today

In the last weekly market update post, I shared that a sustainable breakout from 18100 – 18400 is the range and Nifty should give a breakout or breakdown from this range for further levels.

This whole week, nifty was trading in the same range without any breakout or breakdown. Now If you look at the chart, you can see clearly that trend is completely bullish and 18450 – 18500 is the small resistance that needs to break for further upside targets of 18705 & 18948

Right now there is no clear breakout so let’s wait for a clear breakout to initiate a long trade.

On the downside, 18000 – 18100 is playing as an immediate support zone. Any decline can be treated as a buy-on-dips opportunity until Nifty is not giving a fresh breakdown from this zone.

As per the current chart, 18050 – 18500 would be the range for the coming week.

Nifty Weekly Options Chain Analysis

nifty weekly open interest

The highest Open interest stands at 19200 CE & 18300 PE, followed by 18400 CE & PE based on option chain data. PCR of all strikes is 1.16, which indicates a neutral market. PCR at 18300 stands at 2.22, which is acting as an immediate support level.

The Put-call ratio at 18600 stands at 0.17, which is acting as a resistance level. Equally, the important indicator Option Pain is at 18400, indicating weekly expiry at 18400. A shift in option pain will provide further levels of expiry. So keep tracking max pain.

Significant open interest buildup on the PUT side indicates that facing good support from the downside. So based on the OI, the possible range for this week should be 18200 – 18600.

Keep tracking open interest to analyze market participants’ behavior. If you don’t know how to analyze open interest for weekly option hedging strategies. Just enroll for our Option Strategies – A Mentorship Program.

Nifty Weekly Options Strategy: Bullish Butterfly

Nifty Weekly Options Strategy

Possible adjustments:

Initially, you can keep a stop loss of 18400 for this strategy. This means square off if you find nifty is giving a breakdown.

We will do some more adjustments to make it a low-loss or no-loss strategy to reduce the risk and increase profitability. To learn these adjustments either you can join our Mentorship Program or join the premium telegram channel.

In the above telegram channel, I’m sharing the logic also like why I do certain adjustments.

If you want to learn these strategies and their adjustments in more practical ways with live mentorship, You can enroll in our Option Strategies – A Mentorship Program(20% OFF).

Weekly Analysis with Bank Nifty weekly options strategy

bank nifty chart today

I will follow the same view and levels that I shared last week because BankNifty is trading in the same zone.

During this uptrend, the Banknifty has entirely outpaced the Nifty. Trading near all-time high levels now sends a warning signal that profit booking is extremely likely.

At this point, I’m neither bullish nor bearish; in fact, the banknifty is trading in a no-trade zone. If you have a long trade, now is the moment to book profit. 42827 is the level of support to keep an eye on. A break of this level will trigger a sell signal with a target of 42045.

On the upper side, a new buy signal will trigger only after a breakout from 41100 to 41550.

In a nutshell, sell below 42827 and buy above 41550. Before then, only use range-bound tactics.

This is the best time to trade with some limited risk range-bound strategies. So focus more on range-bound strategies.

Bank Nifty Weekly options chain analysis

BankNifty Open Interest Chart

The highest Open interest stands at 44000 CE & 43500 PE, followed by 43800 CE & 43700 PE based on option chain data. PCR of all strikes is 1.04, which indicates a neutral market. PCR at 43500 stands at 2.42, which is acting as an immediate support level.

The Put-call ratio at 44000 stands at 0.46, which is acting as a resistance level. Equally, the important indicator Option Pain is at 43700, indicating weekly expiry at 43700. A shift in option pain will provide further levels.

Remember one thing: When IV is high, data can change anytime so keep following more closely.

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

Bank Nifty Weekly Options Strategy: Iron Condor

Bank nifty weekly options strategy

Possible adjustments:

If you find that BankNifty gives a breakdown and sustains below 43000, then Shift your Call spread to 1000 points down.

The same thing you can do with put spread means if you got a breakout from 44200. You can shift your put spread to 1000 points up.

We will do some more adjustments to make it a no-loss strategy to reduce the risk and increase profitability. To learn these adjustments either you can join our Mentorship Program or join the premium telegram channel.

Must check these also:

Post your comments in the comment box if you have a query related to the Nifty and Bank Nifty weekly options strategy. You can ask any question related to option trading in the comment box.

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

*( Please avoid any question like which Call or Put we should buy in the coming week).

Few stocks shared on Telegram Channel:

Options Strategies – A Mentorship Program

If you’re an options trader looking to take your skills to the next level, then our Options Strategies: A Mentorship Program is the perfect opportunity for you. With our program, you’ll learn advanced option hedging strategies and adjustments through live market support, giving you the hands-on experience you need to succeed.

By signing up for our program, you’ll gain access to a team of experienced options traders who will guide you every step of the way. You’ll learn how to identify the right options strategies for different market conditions, how to manage risk effectively, and how to adjust your positions as needed.

Plus, with our live market support, you’ll have the opportunity to ask questions and get real-time feedback on your trades. This personalized support will help you develop the confidence and skills you need to take on even the most challenging market conditions.

Don’t miss out on this valuable opportunity to take your options trading to the next level. Sign up for our Options Strategies: A Mentorship Program today and start your journey toward success!

DISCLAIMER: – we are not SEBI research analysts. Views 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.

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