Summary of "29.07.25 || 24850 Option Strike Base Support & Resistance || #optionstrading #support #resistance"

Summary of Financial Strategies, Market Analysis, and Business Trends

The video focuses on analyzing market support and resistance levels based on option premiums, particularly using the 24,850 Strike Price as a key reference. The presenter, Santosh, emphasizes the importance of understanding option premiums, open market behavior, and probability in option trading rather than relying on news or external market events.

Main Financial Strategies and Market Analysis:

Option Premium-Based Market Analysis: The presenter bases market predictions and support/resistance levels primarily on option premiums rather than traditional market news or data.
Open Price and Range Analysis: Examining the open price relative to the previous day’s low and high, and analyzing the range between open-high and open-low to gauge market direction and selling pressure.
Probability Focus: Trading decisions are based on the probability of price movements, especially whether the market will break below the open low or move upwards.
Key Strike Price Identification: The 24,850 Strike Price is identified as a crucial resistance/support level, derived from combining call and put strike premiums and future price calculations.
Support and Resistance Levels from Options Data:
- Major resistance around 24,850 to 24,931 based on Call Option highs.
- Strong support near 24,700 based on Put Option lows and high turnover strikes.
- Additional support/resistance levels calculated using a combination of call and put strikes (e.g., 24,633, 24,630).
Market Behavior Insights:
- Lack of selling pressure indicated by the market not breaking below the open low.
- Sideways market movement expected when there is a shortage of sellers or lack of news impact.
- Short sellers might dominate if the market fails to stay above key resistance levels.
Risk and Trade Management:
- Accept losses when trades do not go as expected.
- Avoid overtrading and making decisions as if the market will close in a single day.
- Use open strategy bills and Option Premium data to guide entries and exits.
Use of Futures vs Spot Prices: Emphasis on analyzing options on a Futures basis rather than spot prices, as Futures better reflect the time value and market dynamics.

Methodology / Step-by-Step Guide:

Analyze the previous day’s market close and option premiums.
Calculate the range between open-high and open-low prices for the current day.
Determine the probability of price movements based on Option Premium data and market open behavior.
Identify key strike prices from call and put options with high open interest and turnover.
Calculate support and resistance levels by combining call strike highs and put strike lows.
Use Futures prices rather than spot prices to base Option Premium calculations.
Observe market behavior around these strike prices to confirm selling pressure or lack thereof.
Make trading decisions based on whether the market breaks these key support/resistance levels.
Manage risk by accepting losses and avoiding overtrading.
Monitor implied volatility and premium changes to adjust strategies.

Business Trends Highlighted:

Increasing reliance on Option Premium data for intraday market analysis.
Use of probabilistic approaches rather than deterministic or news-based trading.
Emphasis on Futures-based option trading for more accurate market insights.
Growing importance of Strike Price support/resistance analysis in options trading strategies.