Selling Nifty Weekly

Options Intraday using

Point & Figure

By Abhishek
(@thedumbtrader)
Why Sell Nifty Weekly Options?

 Liquidity- Nifty Weekly Option are Extremely Liquid

 Follows Technical Analysis very Well
 Multiple Bearish Cluster Counts are seen which result in High Probability Trades
 Theta Decay is your Friend
 Less Volatile as Compared to Bank Nifty
 Combination with OI makes it a favorable Instrument to Trade
 Exits can be managed well using Counts
 Most Important : Chart Settings (Nifty
Futures)

Instrument Box Size Reversal Box Timeframe Price

Nifty Futures 0.05 3 1 min Close Only

 Most Important : Chart Settings (Options)

Instrument Box Size Reversal Box Timeframe Price

Nifty Options 3% 3 1 min **High Low ( not

Close)
Which Strikes to Trade?

 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?

 Double Top Buy

 Double Bottom Sell
 Triple Top Buy [ Used as High Probability Exit Pattern]
 Triple Bottom Sell [ Used as High Probability Entry Pattern]
 High Pole [ High Pole Failure can be used as Stop Loss/ DBS to High Pole as Entry]
 Low Pole [Low Pole Failure can be used as Entry/ DTB to Low Pole as StopLoss]
 Anchor Column Bearish – Follow Through to Anchor Column can be used as Entry
 Anchor Column Bullish- Can be used as Exit Strategy
Single Moving Average- Nifty Futures

Single Moving Average (8) to Nifty Futures

Triple Moving Average- Options

Apply Triple Moving Average (8,13, 21) Options Chart

 Bullish SetUp

 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)

1. Bearish Anchor Column

2. Double Bottom Sell Follow Through to Anchor Column
3. Low Pole Failure ( Double Bottom Sell Follow Through to Low Pole )
4. Bearish TL Breakdown Below Triple Moving Average
5. High Pole DBS Follow Through
6. Triple Bottom Sell
StopLoss Conditions (Any) During Entry

 Low Pole for Nearest Bearish Anchor Column

 Multi Column DTB
 High Pole Failure ( Double Top Buy above Most Recent High Pole)
Immediate Exit Conditions (Any)

 Triple Top Buy

 OTM Price moves above Triple Moving Average
 Trend Line Price Breakout on Nifty Futures or OTM Option above Triple Moving Average
Targets

 Use Vertical Counts ( EC & PC Columns)

 Give Preference to Vertical Clusters
 Vertical Counts on Breakdown Anchor Columns
 Short Term DBS counts can also be used
 Previous VC counts that are Open or Nearest VC counts should be given preference
Some Observations

 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

28 TH June’19 – 5th July’19

 28th June- Closing & Overview

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

OTM CALLS OTM PUTS

12000 CE 11800 PE
11950 CE 11750 PE
28th Jun 12000 CE
28th Jun 11900 CE
28th Jun 11800 PE
28th Jun 11750 PE
28th June OI 15 MINS TF
28th June- Options Movement
 1st July

Not a lot of Movement on Nifty but gave green Closing

Nifty Futures 1st July
1ST July OTM Strikes to Track

OTM CALLS OTM PUTS

11900 CE 11800 PE
11950 CE 11750 PE
1st July 11800 PE
1st July 11750 PE
1st July 11700 PE
1st July 11900 CE
1st July 11950 CE
1st July 12000 CE
1st July OI 15 MINS TF
1st July - Options Movement
 2nd July

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

OTM CALLS OTM PUTS

12000 CE 11800 PE
11950 CE 11750 PE
2nd July 11950 CE-1st Half ( Sell at Open)
2nd July 11950 CE-Achievement of Count
2nd July 12000 CE-1st Half ( Sell at Open)
2nd July 11800 PE ( Morning)
2nd July 11750 PE ( Morning)
2nd July Nifty Futures Bullish Reversal

 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

OTM CALLS OTM PUTS

12000 CE 11800 PE
11950 CE 11850 PE
3rd July 11800 PE
3rd July 11850 PE
3rd July 11900 PE
3rd July 12000 CE
3rd July 11950 CE
3rd July 11900 CE
3rd July OI (15 MINS TF)
3rd July- Options Movement
 4th July - WEEKLY EXPIRY

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

On Weekly Expiry only sell Next Week Contracts

OTM CALLS OTM PUTS

12050 CE 11800 PE
12100 CE 11850 PE
4th July 11800 PE ( 11 JULY Contract)
4th July 11750 PE ( 11 JULY Contract)
4th July 11850 PE ( 11 JULY Contract)
4th July 12000 CE ( 11 JULY Contract)
4TH July 12050 CE ( 11 JULY Contract)
4th July 12100 CE ( 11 JULY Contract)
4th July OI (TF 15 Min)
4TH July Options Movement
 5th July – Budget Day

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

OTM CALLS OTM PUTS

12000 CE 11900 PE
12050 CE 11850 PE
5th July 12000 CE
5th July 12050 CE
5th July 12100 CE
5th July 11800 PE
5th July 11850 PE
5th July 11900 PE
5th July OI (TF 15 Min)
5th July Options Movement
Some Things to Remember

 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 ****