Iron condor on Bank Nifty
A bull put spread and a bear call spread together. You collect premium and keep it if the index stays between the two sold strikes. Shown per lot of 30 with illustrative numbers.
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 within a range until expiry, with losses capped on both sides.
| Leg | Premium per unit | Cash flow |
|---|---|---|
| Buy 1 lot 51,500 PE | ₹43.04 | −₹1,291 |
| Sell 1 lot 52,700 PE | ₹146.42 | +₹4,393 |
| Sell 1 lot 57,300 CE | ₹247.85 | +₹7,435 |
| Buy 1 lot 58,500 CE | ₹93.40 | −₹2,802 |
Profit and loss at expiry
For the whole position, before charges.
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 an iron condor on Bank Nifty?
In this illustrative example, ₹28,265 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 an iron condor?
The total net premium received, if the index ends between the two sold strikes at expiry.
What is the maximum loss?
The width of one spread minus the net premium, times the lot size, if the index ends beyond either bought strike.