Nifty 50, which has seen good amount of call writing, is not likely to rally this week. However, that does not mean a fall from here. From the current level of 18,497, the index has its immediate support at 18,400 with subsequent ones at 18,300 and 18,000.
That said, since you’re holding short position on weekly option, time decay can work in your favour and also, the likelihood of a fall below 18,300 looks unlikely this week.
So, you can consider holding your put short till expiry.
Note that, for options, stop-loss and target should ideally be based on the underlying’s level. So, we suggest exiting your position if the index breaches the support at 18,300. Because such a break might result in a swift fall to 18,100 or 18,000.
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