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By Abhishek
(@thedumbtrader)
Why Sell Nifty Weekly Options?
Only Trade OTM Options. For example if Nifty is Trading at 11980 then track only 12050
CE/12100 CE & 11900 PE/11850 PE
On Thursday's do not Trade Current Expiry. Trade next Expiry Only
Point & Figure Patterns to use?
Step 1: Nifty Must be Trading above SMA ( 8) ( Don’t wait for DTB/DBS on Futures)
Step 2 :Looks for OTM Puts which are trading below TMA ( 8,13,21)
Bearish SetUp (All)
Step 1: Nifty Must be Trading below SMA ( 8) ( Don’t wait for DTB/DBS on Futures)
Step 2 :Look for OTM Calls which are trading below TMA ( 8,13,21)
Entry Conditions(Any) Bearish/Bullish)
Nifty Selling is much slower that BankNifty so don’t expect movement like BankNifty. It will
test your patience but worth it
Sometimes OTM Options of both Calls & Puts will be trading below TMA when market will
be sideways, then watch both of the Option and decide which one will be Bearish and
Short that one.
May get Multiple Trades on Same Day in same/Opposite Directions. Don’t Hesitate – Just
Follow the Setup.
LET’S Discuss Trades
1st Day of Weekly Series – Nifty Opened Minor Gap Up and then started Falling. How to
Trade this? Let’s Look at Nifty Futures Chart First
28thJune Nifty Futures
28TH June OTM Strikes to Track
Since it’s 1st Day of Weekly Series. Even Far OTM Options can be considered
A volatile Day, Nifty fell 50+points and then recovered in Afternoon to close in Green. This was a
day which gave opportunities to Short both Calls/Puts
Nifty Futures 2nd July
2nd July OTM Strikes to Track
Nifty Futures gave Bullish Reversal when Low Pole was formed and went on to close in
Green. If you were observing OTP PE’s and CE’s you could clearly observe that OTM Puts
reversed and Fell below TMA and OTM Calls were giving Breakouts
This was the indication to sell PUTS and exits Calls. However if you were using Cluster counts
or using VC as targets then you would have exited Shorted Calls much earlier
Reversal Signs on 11900 CE
2nd July 11750 PE
2nd July 11800 PE
2nd July OI (15 MINS TF)
2nd July- Options Movement
3rd July
Mostly a range bound day where nifty opened Gap Up & fell -50 points and recovered to
-13 points. Morning session was good to Sell PUTS afternoon for selling Calls
Nifty Futures 3rd July
3rd July OTM Strikes to Track
Nifty mostly positive throughout the day & then a minor fall near close. Closed in Green
4th July Nifty Futures
4th July OTM Strikes to Track
Volatile Day which opened in Negative, Opened Gap Up but Nifty mostly trades below the 10
MA
Nifty Futures- 5th July
5th July OTM Strikes to Track
This is not A Holy Grail Strategy but Since Nifty is not very Volatile and follows Technical, its easier to Trade it
without Emotions
Target 10-15 Points Per Trade
You can easily Scale Up if you use Money Management Wisely
Don’t Overleverage Margins on Initial Trades, Backrest and then Trade
***Sometimes both CALLS/PUTS will be trading below TMA. Open Both charts and Short the chart
which has more bearish Signals on the Current Day. If you observe a lot of Charts it would be clear
which Option Should be shorted ****