Nifty 50 option strategy: 17-10-2025

Options Strategy & Analysis

Nifty 50 – October 16, 2025

📊 Chart Analysis

Bias: Bearish

EMA/Trend: Price above 20/50 EMA, testing 100/200 EMA near resistance

Support/Resistance: Support @ 25200 | Resistance @ 25400

Stoch RSI: Overbought, easing slightly

🖼️ 15m Chart

Nifty 50 near resistance with overbought Stochastic RSI.

📈 Option Chain Analysis

Highest Put OI: 25200 (Strong Support)

Highest Call OI: 25400 (Strong Resistance)

IV Skew: Slightly Bearish Skew

Greeks Insight (Delta/Theta): Delta negative, Theta positive (time decay benefits)

🎯 Selected Hedged Strategy

Strategy: Bear Call Spread

Strikes: Sell 25350 CE, Buy 25450 CE

Rationale: Capitalizes on sideways to downward movement or time decay near resistance.

💰 Pre-Trade Metrics

Entry Premiums (Net Credit): + ₹3,750

Max Profit: ₹3,750

Max Loss: ₹2,204.75

Risk/Reward: 1:0.59

Prob. of Profit (POP): 65%

Lot Basis: 1 Lot (75 Shares)

Risk Level:

LowModerateHigh

📌 Trade Note

Entry Trigger: Enter trade if Nifty sustains above 25350 for 15 minutes.

Exit Plan: Exit on 70% profit/loss threshold or if Nifty sustains above 25350 for 15 minutes.

Post-Trade Analysis

Trade Completed • -₹1,500 Loss

Final P&L

-₹1,500

Return on Risk

-68%

Trade Duration

1 Day

Strategy Recap

The Bear Call Spread was entered with Nifty at 25350. The market moved above the short strike, resulting in a loss.

Strategy Performance

The trade resulted in a loss of ₹1,500, approximately 68% of the maximum loss, due to unfavorable market movement above resistance.

Learnings & Observations

• Monitoring Stochastic RSI in overbought conditions is critical for timely exits.
• Tighter stop-loss could reduce losses when market moves against the strategy.

🔗 Recommended Trading Platforms

Kotak Neo (NSE/BSE/MCX)

For Indian Equities & Derivatives

Delta Exchange

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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.