Nifty 50 option strategy: 15-10-2025

Options Strategy & Analysis

Nifty 50 Index (INDICES) – October 14, 2025, 11:07 PM IST

📊 Chart Analysis

Bias: Mild Bearish (Range-Bound)

EMA/Trend: Bullish Stack/Uptrend (Daily) in minor correction. Price is above all major EMAs, but below 20/50 EMAs on 1H/15M charts, suggesting a short-term pullback in a strong long-term uptrend.

Support/Resistance: Strong Technical Support at 25,000 (200H EMA). Key OI Support (Highest Put OI) at 25,200. Key OI Resistance (Highest Call OI) at 25,400.

Stoch RSI: Daily: Overbought/Consolidation. 1H: Oversold (Flattening). Short-term selling pressure is losing momentum, indicating a likely bounce or range-bound action.

🖼️ 15m Chart

15-minute chart showing short-term correction within a broader uptrend.

📈 Option Chain Analysis

Highest Put OI: 25,200 (0.47 Lacs contracts)

Highest Call OI: 25,400 (0.61 Lacs contracts)

IV Skew: High Implied Volatility (IV) on some strikes suggests caution; the IV Skew is currently not explicitly provided, but the Bear Call Spread is a volatility selling strategy.

Greeks Insight (Delta/Theta): Bear Call Spread benefits from Theta decay and a drop in overall IV. Positive Delta is required to reach maximum profit, meaning the underlying needs to stay below the short strike (25,350).

🎯 Selected Hedged Strategy

Strategy: Bear Call Spread

Strikes: Sell 25350 CE @ 67.87 and Buy 25450 CE @ 50.60. (Net Credit: 17.27 points).

Rationale: The daily uptrend is in a short-term correction, reinforced by Macro/Geopolitical risk aversion (US-China tensions) and FII selling. Option Chain data confirms strong resistance at 25,400. The Bear Call Spread is a high-probability trade designed to profit from the expected range-bound, mild-bearish movement below 25,350.

💰 Pre-Trade Metrics

Entry Premiums (Net Credit): ₹1,295

Max Profit: ₹1,295

Max Loss: ₹6,204.75

Risk/Reward: 0.21:1

Prob. of Profit (POP): 75%

Lot Basis: 75 contracts

Risk Level:

LowModerateHigh

📌 Trade Note

Entry Trigger: Enter if NIFTY struggles to cross 25,200 or rejects sharply after approaching 25,300. Best executed with a spot price below 25,300.

Exit Plan: Exit at the end of the day or when the target of 70-90% profit (~12-15 points) is reached. Stop loss if NIFTY convincingly sustains above 25,350 for 15 minutes.

Post-Trade Analysis

Trade Completed • ₹2,250 Profit

Final P&L

₹2,250

Return on Risk

42.86%

Trade Duration

1 Day

Strategy Recap

The previous Bear Call Spread aimed to profit from a move down or consolidation below 25,600. The market had a mildly bearish bias with strong Call OI resistance at the 25,600 level, and Max profit was achieved as Nifty closed below the short strike.

Strategy Performance

The trade achieved a final profit of ₹2,250, which is approximately 50% of the maximum potential profit, aligning with the planned exit strategy.

Learnings & Observations

• Confirmation from Stoch RSI and Nifty holding below 25,500 proved to be an effective entry trigger for the out-of-the-money credit spread.
• Max Loss was well-defined, and the 61% PoP accurately reflected the high-probability nature of the OTM credit spread, reinforcing the use of defined risk strategies.

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⚠️ Disclaimer

Options trading involves significant risk and is not suitable for every investor. Please ensure you understand the risks involved and consult with your financial advisor before participating. Past performance does not guarantee future results. Trade responsibly.