# How is the ATM strike determined for NIFTY options?
**URL:** https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039
**Category:** F&O
**Created:** [August 14, 2026, 5:20am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039 "2026-08-14T05:20:54Z")
**Posts on this page:** 11
**Page:** 1
### Author:  [@zetex](https://tradingqna.com/u/zetex)
#### Post date: [August 14, 2026, 5:20am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/1 "2026-08-14T05:20:54Z")
I’m trying to understand exactly how the ATM strike is decided for NIFTY options.
Is the ATM strike based on:
1. The strike price closest to the NIFTY spot price?
2. The strike price closest to the NIFTY futures price?
3. The strike whose Delta is closest to 0.50?
4. Or some other methodology defined by the exchange/broker?
Also, can the next weekly options contract have a different ATM strike from the current weekly contract at the same point in time?
For example, if the current weekly expiry considers 24,300 as ATM, could the next weekly expiry consider 24,400 as ATM because of differences in futures pricing or some other factor?
---
### Author:  [@KarthikAcharya](https://tradingqna.com/u/KarthikAcharya)
#### Post date: [August 14, 2026, 5:29am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/2 "2026-08-14T05:29:58Z")
> [@zetex](#):
>
> Is the ATM strike based on:
>
> 1. The strike price closest to the NIFTY spot price?
> 2. The strike price closest to the NIFTY futures price?
> 3. The strike whose Delta is closest to 0.50?
> 4. Or some other methodology defined by the exchange/broker?
The ATM strike for NIFTY options is determined based on the NIFTY index (spot) price, and not based on the option’s Delta or the futures price.
> [@zetex](#):
>
> Also, can the next weekly options contract have a different ATM strike from the current weekly contract at the same point in time?
>
> For example, if the current weekly expiry considers 24,300 as ATM, could the next weekly expiry consider 24,400 as ATM because of differences in futures pricing or some other factor?
The exchange defines the applicable strike intervals, and the strike closest to the underlying price is considered ATM.
So, different expiry contracts would not have different ATM strikes. The ATM designation is based on the underlying NIFTY level and the available strikes.
You can check out the [Varsity Option Module](https://zerodha.com/varsity/module/option-theory/) to have a detailed understanding.
---
### Author:  [@siva0](https://tradingqna.com/u/siva0)
#### Post date: [August 14, 2026, 6:34am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/3 "2026-08-14T06:34:16Z")
Determined by SEBI institute of mental and harassment.
1. Main purposeof F&O as per sebi is to hedge ! But they restrict the strike prices so that u cannot hedge the adversary
Logic : people are loosing !
( is there any trade people dont loose ? Its obvious if somebody haa to win someone has to loose in that trade )
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### Author:  [@pavinjoseph](https://tradingqna.com/u/pavinjoseph)
#### Post date: [August 14, 2026, 7:05am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/4 "2026-08-14T07:05:46Z")
This is a very good question and even trips up experienced traders. 🤓
Nifty options are **index options** akin to SPX, not futures options like ES. 👈
What @KarthikAcharya said can be visualized when looking at the NSE or Kite option chain. Regardless of the expiry, the ATM is around 24350 as spot is 24350 now. 🧐
The confusion comes from trading platforms like Sensibull where ATM is shown based on futures or synthetic futures price and/or delta. This is more useful for greek trading and hedging. ✅
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### Author:  [@Satyam\_Sagar](https://tradingqna.com/u/Satyam_Sagar)
#### Post date: [August 14, 2026, 7:20am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/5 "2026-08-14T07:20:38Z")
let me do it myself:
NIFTY:
spot = 24539
fixed intervel betw strike(I) = 50
deviation of spot from round(d) = 24539(spot) % 50(I)
rounded spot(R) = 24539(spot) - 39(d)
now,
if: 39(d) \> 25(I/2) then ATM = 24500(R) + 50(I) = 24550
else: ATM = 24500
hope this makes sense!
NOTE:
_% is a [modulo operator](https://en.wikipedia.org/wiki/Modulo)_
---
### Author:  [@Satyam\_Sagar](https://tradingqna.com/u/Satyam_Sagar)
#### Post date: [August 14, 2026, 7:24am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/6 "2026-08-14T07:24:40Z")
> [@siva0](#):
>
> 1. Main purposeof F&O as per sebi is to hedge ! But they restrict the strike prices so that u cannot hedge the adversary
>
> Logic : people are loosing !
>
> ( is there any trade people dont loose ? Its obvious if somebody haa to win someone has to loose in that trade )
my bruh is so tortured at this point, he’s started hallucinating. 💀
---
### Author:  [@Satyam\_Sagar](https://tradingqna.com/u/Satyam_Sagar)
#### Post date: [August 14, 2026, 7:28am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/7 "2026-08-14T07:28:17Z")
> [@KarthikAcharya](#):
>
> strike closest to the underlying price is considered ATM.
🤷♂️
> [@siva0](#):
>
> Determined by SEBI institute of mental and harassment.
🤣
---
### Author:  [@zetex](https://tradingqna.com/u/zetex)
#### Post date: [August 14, 2026, 2:07pm UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/8 "2026-08-14T14:07:58Z")
I was trying to balance my trade using next weekly options, but when I picked ATM Strike based on Spot Price, the Payoff became wayward; then I tried ATM Strike based on Delta of Options and got my desired Payoff but now I’m concerned whether it will behave as ATM or not ?
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### Author:  [@pavinjoseph](https://tradingqna.com/u/pavinjoseph)
#### Post date: [August 14, 2026, 5:39pm UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/9 "2026-08-14T17:39:20Z")
Based on what you’ve observed with the payoff graph, you should use the delta based ATM. ✅
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### Author:  [@vamsi.ksb](https://tradingqna.com/u/vamsi.ksb)
#### Post date: [August 29, 2026, 5:10pm UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/10 "2026-08-29T17:10:32Z")
Hi @zetex
This is how you find ATM strike.
Step 1: Pick any strike for which both put and call are liquid. For Sep 1 expiry, let’s pick 24200.
Step 2: Find the forward price for the Sep 1 expiry using Put Call parity:
Forward - Strike = Call price - Put price
Forward = Call price - Put price + Strike
Forward = 97.2 - 70 + 24200 = 24227.2
^ This is as per Aug 28 close data.
Step 3: Pick the strike that is closest to this Forward price. That strike is your ATM strike for this expiry. It is 24250 for Sep 1 expiry.
You can do this for any strike. And I have used LTP. You can use settle price or midpoint of bid-ask. You will usually get the same result.
Also, the actual put-call parity is:
Present value of (Forward - Strike) = Call price - Put price
But for very near expiries (anything less than 2-3 months), we can ignore the present value part.
> [@zetex](#):
>
> Also, can the next weekly options contract have a different ATM strike from the current weekly contract at the same point in time?
Absolutely.
If you follow the same steps for Sep 15 expiry, you will find that the ATM strike is 24300.
---
### Author:  [@zetex](https://tradingqna.com/u/zetex)
#### Post date: [August 30, 2026, 1:46am UTC](https://tradingqna.com/t/how-is-the-atm-strike-determined-for-nifty-options/197039/11 "2026-08-30T01:46:29Z")
Perfect.
Thanks for the reply 👍.