Nifty 50 Options Strategy: Analysts Suggest Bull Call Spread for 26 May Expiry

Indian Stock Market Trades Higher on Tuesday Amid Mixed Global Cues

The Indian stock market traded higher on Tuesday, led by gains in IT stocks amid mixed global market cues. A fall in crude oil prices on hopes of a US-Iran ceasefire deal supported the bullish momentum in the equity market. The Sensex traded 272.51 points, or 0.36%, higher at 75,587.55, while the Nifty 50 was up 74.35 points, or 0.31%, at 23,724.25.

Key Gainers and Losers on Nifty 50 Index

The top gainers on the Nifty 50 index were Infosys, Tech Mahindra, Tata Motors Passenger Vehicles, HCL Technologies, and Eternal, while Kotak Mahindra Bank, Bharti Airtel, UltraTech Cement, Coal India, and Tata Consumer Products were the top index losers.

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Market Performance on Monday

On Monday, the Sensex ended 77.05 points, or 0.10%, higher at 75,315.04, while the Nifty 50 settled 6.45 points, or 0.03%, higher at 23,649.95.

Nifty Options Highlights

In the options segment, the highest Open Interest (OI) on the Call side is at the 24,000 strike, followed by 23,800 which could act as resistance levels. On the Put side, the highest Open Interest is at 23,400 followed by 23,300 which may serve as support levels, Axis Securities said. The premium for the At-the-Money option is ₹549, indicating a likely trading range for the week between 23,100 and 24,200, it added.

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Nifty Options Trading Strategy Comparison

Recommended Nifty Options Strategy for 26 May 2026 Expiry

Axis Securities has recommended a Bull Call Spread strategy for Nifty options contracts expiring on 26 May 2026, expecting a moderately bullish view. The strategy involves buying a call option with a strike price slightly lower than the current market price of the underlying asset, which is Nifty 50, and simultaneously selling another call option with a higher strike price (out-of-the-money), both with the same expiration date.

Strategy Details

Buy 1 lot of Nifty 23,750 Call at ₹200 – ₹230 Sell 1 lot of Nifty 24,000 Call at ₹110 – ₹130 Break Even Point: 23,839

Risk-Reward Analysis

According to Axis Securities, the maximum potential risk for this Nifty options trading strategy is ₹5,785, whereas the potential maximum reward is ₹10,465. Traders may consider deploying this spread strategy to achieve moderate returns while maintaining controlled risk and reward, said the brokerage firm. It suggested to enter and exit all the legs in strategy together and square-off the strategy before the expiry session closes.