Nifty Volume profile for Options Trading

nifty option trading time trading Aug 08, 2023
Nifty Volume profile for Options Trading

Volume profile indicates big players activity and same can be applied prudently even for Options Trading.

Options Trading requires understanding of momentum, trend, time to expiry and range.

Majority focus only on Open interest but by combining change of Open interest along with Volumes on stocks, indices the overall perception can sharply increase.

Trading conviction increases using this techniques of Trading.

Nifty hourly chart Volume profile

Nifty 19800 Call Option 17th August 2023

Nifty hourly chart shows that there is big volume buildup at 19500 (fut) and 19800 (fut) levels. This can be seen from right hand side volume area.

The buildup at 19500 (fut) along with Open interest analysis confirms that Bears have to take prices below this level to trap the bulls on upside. Whereas break above 19800 is must for positive resumption.

Nifty call option chart – As we see sharp volumes around 19800 levels we have applied Volume profile directly on 19800 strike price call option. This chart shows volume near 50 levels and break below 30 can result into downtrend on this strike prices.

So by simply using volume profile analysis one can form trading strategy on Nifty Options. Like above one can look forward to sell 19800 strike price Option of 17th August expiry below 30 with stoploss of 50 and target to 0 levels.

In a nutshell, Volume profile is must tool for Options trader and can be applied for Options buying strategy also.  

5 Trade Setups must for Option Traders – Learn the science of Trading Options with Option chain analysis, Volume and OI profile analysis, KST momentum indicator in Options Trading Using Technical Analysis (OTTA) on 19th – 20th August, combine with Neo wave and Gann analysis in Master of Waves (MOW) on 16th – 17th September. Together both modules is called Become Market Wizard (BMW), Limited Seats, Early Bird Ends on 10th August 2023.