{"id":217124,"date":"2026-08-24T15:03:48","date_gmt":"2026-08-24T09:33:48","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217124"},"modified":"2026-08-24T15:03:50","modified_gmt":"2026-08-24T09:33:50","slug":"short-strangle-sensex","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/short-strangle-sensex\/","title":{"rendered":"Short Strangle Sensex: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Sensex level used in this article: Rs 77,538 (as of 20 Aug 2026). Next weekly (Thursday) and monthly (last Thursday of the month) expiry: 27 August 2026 (Thursday). Lot size 10. Sensex retained its weekly expiry slot on BSE under SEBI’s one weekly index per exchange rule; Bankex and Sensex 50 weekly contracts were discontinued instead, in November 2024. Both weekly and monthly Sensex contracts remain available.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

The short strangle Sensex involves selling an out of the money call and an out of the money put on the same monthly expiry, collecting a net credit upfront. With Sensex at Rs 77,538, the short strangle Sensex may profit if the index stays between the two short strikes through the monthly expiry, allowing both options to expire worthless or near worthless. The short strangle Sensex carries unlimited theoretical risk on the upside and large risk on the downside, requiring close active management over the full monthly cycle.<\/p>\n<\/div>\n

The this strategy differs from a short straddle by using out of the money strikes rather than at the money strikes on both legs. This generally means a lower net credit than a straddle but also a wider profit zone, since the index needs to move further before either short leg is threatened. Because Sensex weekly options were discontinued in November 2024, the short strangle Sensex traders build today runs for the full monthly cycle rather than a single week.<\/p>\n

Like other undefined risk strategies, the the position has no protective long options to cap the loss. If the index makes a large move in either direction, losses can grow substantially, which is the central risk consideration before using this strategy.<\/p>\n

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