Iron condor on Sensex
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 20 with illustrative numbers.
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 within a range until expiry, with losses capped on both sides.
| Leg | Premium per unit | Cash flow |
|---|---|---|
| Buy 1 lot 79,800 PE | ₹35.47 | −₹709 |
| Sell 1 lot 80,500 PE | ₹101.35 | +₹2,027 |
| Sell 1 lot 83,500 CE | ₹139.47 | +₹2,789 |
| Buy 1 lot 84,200 CE | ₹54.65 | −₹1,093 |
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 Sensex?
In this illustrative example, ₹10,986 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 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.