Combinations

Bullish

Debit or credit

Risk: Large below the put strike

Seagull (bullish)

Also called: Call spread risk reversal

Buy a call spread and sell an out-of-the-money put to pay for it: little or no net cost, a capped gain above, and a short put's risk below.

Payoff sketch (per unit, index points)

At expiry

Today (7 days left)

Net premium

Debit 59 pts

Max profit

+241 pts (₹15,690 per lot)

Max loss

Large as the price falls

Breakeven

25,059

Legs: Buy CE ATM · Sell CE ATM +300 · Sell PE ATM −300. Illustration, not live prices: an index at 25,000, strikes 100 points apart, Black-Scholes premiums at 13% implied volatility, 7 days to expiry, 6.5% interest, no skew and before charges. Rupees per lot use a NIFTY lot of 65.

How it works

The short put finances the call spread. Between the put strike and the bought call nothing much happens; the gain is capped at the upper call; the loss below the put is open-ended like a short put.

When traders use it

A bullish view expressed at little or no cost, accepting downside below a level.

Greeks

Delta	Positive.
Gamma	Mixed: positive near the bought call, negative near the sold strikes.
Theta	Small, depending on the strikes.
Vega	Small at entry.

Profit, loss and margin

Max profit	(Call spread width + net credit, or − net debit) × quantity, above the upper call.
Max loss	Large below the put strike.
Breakeven	Depends on the net premium.
Margin	The short put's margin; the call spread needs little.

In India

Short options are margined like futures: NSE Clearing's SPAN risk margin plus an exposure margin (2% of notional for index contracts, 3.5% for stocks in Arthfy's model). An at-the-money short option on NIFTY typically blocks well over a lakh of rupees per lot.
STT is charged on the premium when an option is sold (0.15% of premium from 1 April 2026 in Arthfy's cost model). A short option left to expire, in or out of the money, is not charged STT again at settlement.
A long option that finishes in the money is exercised automatically. STT is then charged on its intrinsic value at the exercise rate (0.15% from 1 April 2026 in Arthfy's cost model), instead of the sale rate on the premium (also 0.15%) that applies when the option is sold before the close. See the lesson on the STT exercise trap.

Arthfy numbers

Arthfy's history does not cover the seagull as one structure; see the bull call spread and short put pages. See Bull call spread.

Try it in the F&O hub

Opens the tool with this structure on today's NIFTY chain. Reading is free with an Arthfy account; some runs use free attempts.

Open in the builderPayoff, Greeks, scenario grid and charges on today's NIFTY chain

Backtest since 2016Daily data, every NIFTY expiry

Replay on expiry daysMinute data since October 2024

Open the option chainLive premiums, IV and Greeks

Synthetics & risk reversals

Risk reversal

Vertical spreads

Bull call spread

Hedges with futures

Collar (against futures)

For education: how the structure works and what it did historically, not a recommendation to trade it.