Straddles & strangles
A big move, more likely down
Debit
Risk: Defined: the premium paid
Strip
Also called: Bearish straddle
Buy one at-the-money call and two at-the-money puts: a long straddle tilted to profit faster from a fall.
Payoff sketch (per unit, index points)
At expiry
Today (7 days left)
Net premium
Debit 524 pts
Max profit
Unlimited above the chart
Max loss
−524 pts (₹34,062 per lot)
Breakeven
24,738 / 25,524
How it works
Each point below the strike earns twice, each point above it once.
With index puts priced above calls (the skew), the extra put is the expensive part.
When traders use it
- Expecting a large move with a downside bias.
Greeks
| Delta | Negative at entry. |
| Gamma | Strongly positive. |
| Theta | Strongly negative. |
| Vega | Strongly positive. |
Profit, loss and margin
| Max profit | Large on the downside; unlimited on the upside. |
| Max loss | All three premiums plus charges, at the strike. |
| Breakeven | Downside: strike − total premium ÷ 2. Upside: 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 strip 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.
