Best Nifty Strategies for Option Trading: Low Risk, High Return Guide

18 Jun. 2025

Best Nifty Strategies for Option Trading: Low Risk, High Return Guide

Trading Nifty options has become a very popular way to receive returns in the Indian stock market. Even if you are a beginner or a more experienced trader, to be successful with Nifty option trading, you need to be well informed about Nifty option trading strategies. From zero-loss strategies to Nifty option selling strategies, a good trading approach will help you to minimize losses while maximizing profit!

This nifty option trading guide will present some useful Nifty option trading strategies that have proven track records of performance and ease of use, especially if you have some trading knowledge.

Nifty Options

Before we get started, let's get a good understanding of what Nifty options actually are.

Nifty options are derivatives products based on the Nifty 50 index. They offer traders the right but not the obligation to buy (or sell) the Nifty index at a specified price (strike price) for a specified time. Unlike futures contracts, whatever profits or losses you accrue will only depend on how the Nifty index moves!

Nifty Option Trading Strategies

Here are some of our top 3 Nifty option trading strategies that are sensible, practical, and easy to implement:

1. Nifty Option Selling Strategy

This is an excellent strategy if the market is not volatile. Selling options can allow you to earn a steady income from the premium. However, it takes solid risk management and timing to make this strategy work.

2. Exploring Put Options

Buying put options is a low-risk affair if the market is in a downward trend. You risk only the premium; you have unlimited upside. This is a good option for bearish trends or short-term declines.

3. Nifty call + put (long straddle) strategy

You buy both a Nifty call option and a put option, both with the same strike price and expiry. You can profit from this strategy if the market moves significantly in price and/or volatility in either direction. This strategy is best used when you're expecting high volatility.

4. Zero Loss Nifty Options Strategy

Having a balanced strategy (with set stop losses and limited-size positions). The idea is not to hit home runs, but we are looking to protect your capital while making small, consistent profits.

5. The Right Strike Price

You should always keep in mind the number of days until expiry. If you're nearer to expiry, in-the-money (ITM) options are safer. If there's a long time till expiry, then out-of-the-money (OTM) options may provide you with a greater number of multiples in your favor.

Our Successful Nifty Algo Strategy—Performance Report!

We have a spot chart-based algo bot that works on a 2-minute timeframe; this will enable fast and fulfilled trading for intraday traders who cannot sit in front of their computers for long.

Here are the key features of our bot strategy:

Spot Chart-Based: Trades based on the Nifty Spot chart (not Futures) for better accuracy.
2-Minute Timeframe: Fast signals suited for intraday execution.
Limited Trades: Not high frequency—fewer but quality trades.
Capital Requirements: Start with just ₹1 lakh and 1 lot.
Broker Flexibility: Connect with over 200 brokers that include Zerodha, Angel One, Upstox and more.
Plug-and-Play: Simple to use, no coding or setup, just connect and go!

Performance Snapshot: Profit ₹356K, return 356%. Drawdown 7.21%, 135 trades, 84% win rate. A top Nifty strategy for beginners and pros alike.

Check Strategy Performance - https://in.tradingview.com/script/sGADNA0F-NIFTY-HNI-Strategy/

Important Tips to Boost Your Strategy

See what’s going on in the global markets: Check global markets before entering the trades, as trading might be moved by the global news or events.
Pay attention to open interest: Strike prices that have the largest open interest are preferable; however, don’t use them when the sessions are too volatile.
Pay attention to the timing of expiry: As noted earlier, options with an expiry approaching have a much higher premium, which is a great time to enter or exit your position.
Avoid putting too many trades in one industry: Do not focus on one industry. Nifty has financials, pharma, plans for supply, and retail energy, but these are all different industries and can all provide opportunities for appropriate trading with options.

Reasons to Use Nifty Options

Low Capital & Increased Convenience: You can enter Nifty options trades with lower capital and have the ability to diversify trades.
Limited Risk: Your max loss is your premium.
What can I do with the options? There are all sorts of possibilities, from hedging to taking advantage of maximum return on capital.

Conclusion

Nifty option trading is not about guessing market direction. It’s about strategic entry, disciplined execution, and risk control. With our spot-chart-based, low-frequency bot, you get the advantage of high precision without coding or screen time.

Whether you're just starting or looking to upgrade your trading game, these nifty strategies for option trading—especially the zero-loss and selling strategies—can help you trade smarter, not harder.