We have determined an optimal reduction condition for NiO-based anode in single chamber solid oxide fuel cells that involve samaria-doped ceria (SDC) as an electrolyte. Optimal condition should not only induce sufficient reduction of NiO to Ni, but also prevent the reduction of SDC electrolyte in order to achieve high open circuit voltage (OCV) and power output. Thermodynamic consideration allowed us to determine the optimal anode reduction condition as $96%H_2-4%H_2O$ atmosphere at $250^{circ}C$. This finding was in a good agreement with the experimental verifications by monitoring the conductivities of SDC and NiO under different reducing conditions.