Bank Nifty strategy

Bull put spread on Bank Nifty

Sell a put and buy a lower-strike put. You collect a premium up front and keep it if the index stays above the sold strike. Shown per lot of 30 with illustrative numbers.

View: bullishCredit (you receive)Limited risk

Contract basics. Bank Nifty lot size: 30. Bank Nifty has monthly options only (last Tuesday of the month), so this example uses 25 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 above a level by expiry, with the loss capped by the bought put.

Illustrative example: Bank Nifty at 55,000, 25 days to expiry, IV 16%, lot size 30
LegPremium per unitCash flow
Sell 1 lot 53,800 PE₹363.07+₹10,892
Buy 1 lot 51,500 PE₹43.04−₹1,291
Net received
₹9,601
Max profit
₹9,601
Max loss
₹59,399
Break-even
53,480

Profit and loss at expiry

For the whole position, before charges.

BE 53,48047,38059,400

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 bull put spread on Bank Nifty?

In this illustrative example, ₹59,399 per set of legs (lot size 30), before charges.

What is the lot size of Bank Nifty options?

30 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 Bank Nifty options expire?

Bank Nifty has monthly options only (last Tuesday of the month), so this example uses 25 days to expiry.

What is the maximum profit on a bull put spread?

The net premium received, if the index ends above the sold put strike at expiry.

What is the maximum loss?

The difference between the strikes minus the net premium, times the lot size, if the index ends below the bought put strike.