Sensex strategy

Bear call spread on Sensex

Sell a call and buy a higher-strike call. You collect a premium and keep it if the index stays below the sold strike. Shown per lot of 20 with illustrative numbers.

View: bearishCredit (you receive)Limited risk

Contract basics. Sensex lot size: 20. Sensex has weekly options on BSE expiring every Thursday, so this example uses 7 days to expiry. Strikes in this example are rounded to the 100-point strike interval.

A structure for a view that the index will stay below a level by expiry, with the loss capped by the bought call.

Illustrative example: Sensex at 82,000, 7 days to expiry, IV 13%, lot size 20
LegPremium per unitCash flow
Sell 1 lot 82,700 CE₹339.93+₹6,799
Buy 1 lot 84,200 CE₹54.65−₹1,093
Net received
₹5,706
Max profit
₹5,706
Max loss
₹24,294
Break-even
82,985

Profit and loss at expiry

For the whole position, before charges.

BE 82,98575,44090,936

Premiums are theoretical Black–Scholes values from round, illustrative inputs, not market prices. Charges and margin are not included.Price a single leg with your own numbers.

Frequently asked questions

What is the maximum loss of a bear call spread on Sensex?

In this illustrative example, ₹24,294 per set of legs (lot size 20), before charges.

What is the lot size of Sensex options?

20 units per lot at the time of writing. Lot sizes are revised by the exchange from time to time; check the current size before trading.

When do Sensex options expire?

Sensex has weekly options on BSE expiring every Thursday, so this example uses 7 days to expiry.

What is the maximum profit on a bear call spread?

The net premium received, if the index ends below the sold call strike.

What is the maximum loss?

The strike difference minus the net premium, times the lot size, if the index ends above the bought call strike.