Straddles & strangles
A big move, more likely up
Debit
Risk: Defined: the premium paid
Strap
Also called: Bullish straddle
Buy two at-the-money calls and one at-the-money put: a long straddle tilted to profit faster from a rise.
Payoff sketch (per unit, index points)
At expiry
Today (7 days left)
Net premium
Debit 555 pts
Max profit
Unlimited above the chart
Max loss
−555 pts (₹36,087 per lot)
Breakeven
24,445 / 25,278
How it works
Like a long straddle with an extra call: each point above the strike earns twice, each point below it earns once.
The extra call raises the cost, so the move needed in either direction to break even is larger than for a plain straddle.
When traders use it
- Expecting a large move with an upside bias, for example around an event.
Greeks
| Delta | Positive at entry (two calls against one put). |
| Gamma | Strongly positive. |
| Theta | Strongly negative: three long options decay. |
| Vega | Strongly positive. |
Profit, loss and margin
| Max profit | Unlimited on the upside; large on the downside. |
| Max loss | All three premiums plus charges, at the strike. |
| Breakeven | Upside: strike + total premium ÷ 2. Downside: strike − total premium. |
| Margin | No margin: premiums are paid upfront. |
In India
- Buyers pay the full premium upfront and need no further margin; the most they can lose is the premium plus charges.
- 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 has no strap yet; the long straddle is the nearest shape it covers. See Long straddle.
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
Related
For education: how the structure works and what it did historically, not a recommendation to trade it.
