Short strangle on Nifty 50
Sell an out-of-the-money call and an out-of-the-money put. You keep the premiums if the index stays between the strikes; the loss outside them is not capped. Shown per lot of 65 with illustrative numbers.
Contract basics. Nifty 50 lot size: 65. Nifty 50 has weekly options expiring every Tuesday, so this example uses 7 days to expiry. Strikes in this example are rounded to the 50-point strike interval.
A structure for a view that the index will stay within a range. Losses outside the range are uncapped.
| Leg | Premium per unit | Cash flow |
|---|---|---|
| Sell 1 lot 25,500 CE | ₹44.20 | +₹2,873 |
| Sell 1 lot 24,500 PE | ₹32.49 | +₹2,112 |
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 short strangle on Nifty 50?
The loss is not capped. In this illustrative example the position collects ₹4,985 but can lose far more if Nifty 50 moves sharply.
What is the lot size of Nifty 50 options?
65 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 Nifty 50 options expire?
Nifty 50 has weekly options expiring every Tuesday, so this example uses 7 days to expiry.
What is the maximum profit on a short strangle?
The combined premium received, if the index ends between the two strikes.
What is the difference between a short strangle and an iron condor?
An iron condor adds bought options beyond each strike, which caps the loss and lowers the margin, at the cost of a smaller premium.