Long call butterfly on Bank Nifty
Buy one lower call, sell two middle calls, buy one higher call. A low-cost structure that pays most if the index ends near the middle strike. 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 finish near a specific level, with a small, known maximum loss.
| Leg | Premium per unit | Cash flow |
|---|---|---|
| Buy 1 lot 53,800 CE | ₹1,802.05 | −₹54,062 |
| Sell 2 lot 55,000 CE | ₹1,044.02 | +₹62,641 |
| Buy 1 lot 56,200 CE | ₹527.96 | −₹15,839 |
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 a long call butterfly on Bank Nifty?
In this illustrative example, ₹7,260 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 butterfly?
The distance between two strikes minus the net premium, times the lot size, if the index ends exactly at the middle strike.
What is the maximum loss?
The net premium paid plus charges.