Long strangle on Bank Nifty
Buy an out-of-the-money call and an out-of-the-money put. Cheaper than a straddle, but needs a bigger move to pay off. 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 move sharply in either direction.
| Leg | Premium per unit | Cash flow |
|---|---|---|
| Buy 1 lot 57,300 CE | ₹247.85 | −₹7,435 |
| Buy 1 lot 52,700 PE | ₹146.42 | −₹4,393 |
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 strangle on Bank Nifty?
In this illustrative example, ₹11,828 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.
Strangle or straddle: what is the difference?
A strangle uses different strikes outside the current level, so it costs less but needs a larger move to break even.
What is the maximum loss on a long strangle?
The combined premium paid, if the index ends between the two strikes.