What Does the Latest Nifty Options Writers Playbook Reveal for Expiry?
Market Sentiment and Trailing Level Insights
Based on derivatives positioning, the monthly sentiment continues to remain positive. However, the critical trailing stop loss level is pegged at 25715 on a spot closing basis. Traders should note that if Nifty closes below this level, sentiment could weaken for the upcoming expiry. In case a new intraday low is formed, the fresh low should be considered as the reference stop loss level.
Strategies Based on Risk Appetite
For traders looking to align with the prevailing bullish tone, the following strategies can be considered depending on their risk profile:
| Strategy Type | Action | Notes |
|---|---|---|
| Futures Buying | Go long in Nifty Futures | Maintain SL below 25715 spot |
| Married Put | Buy Nifty and simultaneously buy an ATM put | Protects downside with limited risk |
| OTM Put Selling | Sell 25300/25500 PE | High theta decay near expiry |
Trailing levels serve as the best risk-reward entry zones and provide objective exit signals when volatility spikes near expiry. Maintaining discipline around stop-loss levels ensures limited drawdown risk.
Risk Management and Key Takeaway
Markets often reward disciplined option writers who respect levels. Traders must avoid over-leveraging, use defined exits, and adjust positions only after Nifty closes beyond 25715 decisively. Options writing near known OI clusters works well only with proper hedges and stop monitoring.
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, emphasizes that trailing stop levels at 25715 provide a clear line between strength and weakness. Writers can use futures hedges or married puts for balanced exposure. Discover more professional derivatives insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries
- How Do Open Interest Levels Influence Nifty Range?
- What Are the Best Option Writing Strategies Near Expiry?
- How Can Trailing Stop Loss Help Derivatives Traders?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
