Get started

Optionstrategies

Bank Nifty Strong move!! As per trend analysis Bank nifty has seen bounce earlier in March'23 and November'23 it works as powerfull support given big moves in longer time. Also trend also comfirms that buyers are still intact to make bounce in addtion to that we can see a wick reversal pattern is also seen on daily time frame. Which also confirms buyer strength and also bank nifty has hold tightly on 25th Jan'24. which can lead a goods movement day keeps eyes on opening of Bank Nifty. On Smaller time frame buyer have tried to make movement in last hour which also give hint for trend day. Still beware of traps & avoid false breakouts enter on restest only And also keep note it can also fall from support as more the retest at support zone makes it weaker. Note : Do your own analysis before making any trade or investment decesion all post are for study purpose.
NSE:BANKNIFTY
by Price_actiontaker14
Options: Buying vs. Selling - A Comprehensive GuideExploring the realm of options trading unveils two key players: Buyers and Sellers. Each wields unique strategies with its mix of risks and rewards. Let's break it down in simple terms. # Option Buyers: Riding on Possibilities Chances of Making Money (PoP): Buyers aim for good market moves, counting on accurate predictions within a specific time. Risk: For buyers, risks are limited. Losses only go as far as the premium paid. Time Pressure: Buyers fight against time. Being right means aligning predictions with a set timeframe. Volatility Impact: Buyers gain when things get more uncertain, making their options potentially more valuable. Market Moves Matter: Buyers thrive when the market goes up or down; they bet on a specific direction. Skill Needed: While simpler than selling, buyers need a good sense of market trends. # Option Sellers: Crafting Strategies with Care Chances of Making Money (PoP): Sellers prefer stable or slightly tricky markets, benefitting from time passing by. Risk Check: Sellers face unlimited risks if the market moves too much against them. Time on Their Side: Sellers like time passing; it works in their favor. Volatility Impact: Less drama is better for sellers; it makes their options lose less value. Direction Doesn’t Matter Much: Sellers can make money in quieter markets; they have more room to move. Skill Level: Selling needs more skill, involving clever strategies and calculations. # What Decides Success: A Mix of Factors Winning in the options game is about reading the market, knowing your risk appetite, and being smart with strategies. - Chances of Making Money: Buyers look for clear market trends, while sellers like it stable. - Risk Game: Buyers have limits on losses; sellers need to watch out for big market moves. - Time’s Effect: Buyers fight against time; sellers make time work for them. - Cost and Volatility: Buyers pay more, and gain from more drama. Sellers earn from premiums and like calm markets. Succeeding in options trading is about thinking smart, adapting to what the market gives, and keeping your skills sharp. Grateful for Your Support! 🌟 To our amazing 150+ followers, your enthusiasm fuels our journey! 🚀 Thank you for being part of our community, and decoding financial mysteries together. Here's to more insights and learning ahead.
BSE:SENSEXEducation
by iamrk7
13th Dec ’23 - BankNifty does a W pattern on the ascending trendBankNifty Today’s Analysis The opening candle in Banknifty had a swing range of 189pts ~ 0.4%. That candle looked dangerous and I really thought we would have a deep RED day today. Quite interestingly, BN made a W pattern right at the top band of the ascending channel (see the 63mts chart link also). 4mts chart link - click here Once BN got caught in that channel envelope, it was blindly following that path. The final close is at -0.01% - it cannot get more flat than this. The W pattern may change the dynamics for tomorrow - usually, it favors the bulls. So we need to wait and watch for the first hour or so tomorrow and then decide. From an expiry trading perspective, the OTM options really did not have any premium to start with. The opening moves gave some rush and then the reversal by 12.31 also gave some boost to the strikes. 63mts chart link - click here BankNifty has entered the ascending channel and from a medium-term perspective, it all looks bullish to me. For tomorrow, I wish to start with the neutral stance and then change course as the price action develops. Falling below 46565 is bearish to me.
NSE:BANKNIFTY
by viswaram
21 Sep ’23 Post Mortem on BankNifty - will 44429 get broken ?BankNifty Analysis One thing that really gave me confidence in the bearish move was the build up of momentum in banknifty. I did not get this feedback from Nifty, but Banknifty’s pulse gave me hope that further down moves are highly possible. Since I rely on options flow also to gauge the sentiment - the intensity of CE shorts were too good today especially in the last 1 hour of trade. Nifty had a flattish day after the 1st hourly candle - but take a look at banknifty. The 3rd candle onwards everything was in RED. 567pts out of 760 came in this period - and the rest points actually came in gap-down. When the market falls in normal trading hours - it gives a boost of confidence vs fall via gap-downs. That is because traders prefer to see the sentiment changing hands. For tomorrow I am continuing the bearish stance with the first target being 44429 and then 44236. If 44068 gets taken out in next 2 sessions - it is going to be a game changer
NSE:BANKNIFTYShort
by viswaram
2
13 Jul '23 Post Mortem on Nifty + Weekly expiry analysisNifty Weekly Analysis Between the last expiry & today, Nifty50 is actually down 40pts ~ 0.21%. That seems quite hard to believe especially when we had an ATH break today right? The fact is N50 broke out from the 19500 levels today & that would have created the perception that nifty had a gaining week. Also on 7th July we had a red day and almost touched the 19300 levels. So credit goes to N50 since it recovered all its losses & hit a new ATH of 19567 today! --- Nifty Daily Analysis We had 2 strong moves today A gap up open and then a race to take out the ATH, a total swing of 182pts ~ 0.94% A similar fall of 180pts ~ 0.92% to touch the prev. close value Both the directional move would have given ample opportunity for options traders to mint money today. Final close was 0.15% higher mainly supported by the NiftyIT index. The dramatic inverted U shape price action was due to RELIANCE which fell from 2799 to 2743. HDFCBK, KOTAKBK & SBIN also dragged the index. Trades Taken Other than the regular expiry trades, I reopened a bullish PE credit spread between 10 to 10.30 AM. 19500/19400 PE for 67.45/40.65. This was taken when Nifty was at the ATH and due to the reversal this position is currently in loss. Will take a decision tomorrow to hold on to bullish bias or exit at a loss.
NSE:NIFTYLong
by viswaram
11 Jul '23 Post Mortem on Nifty + Long call continues...Today we had a perfect inverted V formation. The high of the day at exact 12.00 noon. A rally of 82pts from opening level and then a fall of 66pts. Even though nifty fell today, it was showing so much of positive energy and a general reluctance to fall. We will bring up the comparison with banknifty shortly & it will make sense. Today's peak formation ensured we are getting a double top at the ATH levels ~ 19508. The profit booking may be attributed to that. If we continue to fall in the coming days - its better to change the bias from long to neutral. --- Trades Taken Yesterday I had reversed my short position to long position & had carried the 19400/19300 PE bullish credit spread overnight. Luckily it worked out alright today. By 10.43 I exited at a price of 29.6/12.9. I exited because more than 50% of premiums had decayed & not because I was bearish. At the same time I entered into 19400/19300 PE bullish credit spread of the 20th July series for a price of 74.7/48.4. We then had the classic reversal, almost back to the open levels. Somehow I felt the risk:reward was not matching & then exited the new position at a loss by 14.46 @ 79.7/49.4 and got back to the 19400/19300 PE spread in the 13th Jul series for 32.7/12.3. The 15.00 candle really scared me and if you calculate the risk:reward was 3980:1020. So I exited the credit spread & went ahead with the call debit spread of 19300/19400 CE @ 176.15/95.15 by 15.03. The rationale being 19300 was still in the money & might offer some cushion as expiry is in 2 days. Whereas 19400 PE could go in the money if the move is 50pts or more.
NSE:NIFTYLong
by viswaram
PostMortem on BankNifty Today & Analysis of 19 APR 2023NSE:BANKNIFTY had a narrow range based trade today with a minor negative bias. Yesterday's swing low was breached by 13.40, but it does not pose a major scare yet! The pattern may look bearish on the 5mts TF, but it actually isnt. Banknifty is comparatively outperforming the Nifty50 and NiftyIT index for the last 3 days. NSE:BANKNIFTY did not have enough momentum to take out the swing high or breach the 42576 levels. This along with the weak sentiment in Nifty50 would have prompted the bulls to take a small break today. There was no violent price moves or support/resistance breaks - this again ensured that the option prices remain low on the penultimate day of weekly expiry. --- The unusual low options premium in bank nifty options are nudging traders like me to switch back to Nifty50 options. I am hoping that this decoupling of banknifty with nifty50 may not last long and the volatility will normalize in the days ahead. --- The 15mts chart has not turned bearish yet. What we see could just be a consolidation. If banknifty is planning to reverse direction at this level - the the first support of 41624 has to be taken out in the next 2 days. Only if the support is taken out quickly, the momentum will favor the dip. --- 1hr chart is still looking strong, the 2 prominent gap-ups standing out boldly. It might be interesting to watch out how the global markets react to the EURO, UK CPI data today. If there are more rate hikes in pipeline - then we may have a weak global sentiment again!
NSE:BANKNIFTY
by viswaram