If you're tired of the whipsaw moves in Nifty and Bank Nifty, it's time to shift your gaze to something smarter — Nifty Midcap Options.
In 2025, as more traders are exploring beyond frontline indices, Nifty Midcap Select Options are gaining massive attention. With slightly lower volatility and better-defined trends, this index is becoming the go-to for traders looking to diversify their options strategies.
Let’s break it down.
What are Nifty Midcap Options?
The Nifty Midcap Select 50 Index represents the performance of the top 50 liquid midcap stocks listed on NSE. Now, just like Nifty and Bank Nifty, it has weekly options available for trading.
- Options contracts based on the Nifty Midcap Select 50 Index
- Settled in cash (not stock)
- Traded on NSE every week (Thursday expiry)
- Lot size: 75 units
Why are Traders Shifting to Nifty Midcap Options?
Lower Volatility
Compared to Bank Nifty's crazy spikes, Midcap Index moves are smoother, making it ideal for directional or neutral strategies.
Attractive Premiums
While Nifty options are cheaper, Midcap offers a great risk-reward ratio, especially for option sellers.
Better Trend Following
Midcap indices often trend longer than Nifty. Great for swing strategies and multi-leg setups.
Algo-friendly
Platforms like Tradetron support Nifty Midcap Options fully — ideal for automating straddles strategy, strangles strategy, spreads, and even intraday delta-neutral strategies.
Top Strategies for Nifty Midcap Options
| Strategy | Ideal Market View | Why It Works |
|---|---|---|
| Iron Condor | Range-bound | Good premiums, stable moves |
| Bull Call Spread | Mildly bullish | Lower cost than ATM Call |
| Short Strangle | Low IV, low news week | Time decay benefit |
| Trend-Following ATM Buying | High momentum | Capitalizes on sustained trends |
Bonus Tip: Use Tradetron to deploy a delta-neutral strategy on Midcap Options with stop-loss and re-entry conditions.
How to Start Trading Nifty Midcap Options?
- Ensure F&O Activation – Check with your broker if Nifty Midcap Select 50 contracts are available.
- Study Option Chain – Learn the strike pricing, IV, and OI patterns. It behaves differently than Nifty.
- Backtest First – Use Tradetron’s backtesting engine to test how your strategy would perform historically on Nifty Midcap.
- Deploy with Risk Management – Automate your SL, target, and condition-based re-entries using Tradetron. No emotional mistakes.
Key Considerations
- Lower liquidity compared to Nifty, but improving rapidly
- Wider bid-ask spreads — avoid low-volume strikes
- Perfect for algo traders & non-directional strategies
Why Use Tradetron for Nifty Midcap Options?
- Supports automated strategy deployment
- Handles multi-leg positions & custom logic
- Avoids manual execution errors in fast-moving markets
- You can even copy profitable public strategies
If you’re a trader looking to scale consistently without screen time, Nifty Midcap Options + Tradetron = 2025’s power combo.
FAQs – Nifty Midcap Options
1. What is the lot size of Nifty Midcap Options?
The lot size is currently 75 units per lot, as set by NSE.
2. Are Nifty Midcap Options available weekly or monthly?
Yes, they are available on a weekly expiry basis (Thursdays), similar to Nifty and Bank Nifty.
3. Can I sell options in Nifty Midcap?
Yes, you can buy and sell calls and puts. But option selling requires margin.
4. Are these options liquid enough?
Liquidity is growing fast. Stick to ATM and 1–2 strikes away for best fills.
5. Can I automate Midcap option strategies?
Absolutely! Platforms like Tradetron fully support automated trading in Nifty Midcap Options.
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