{"id":217142,"date":"2026-08-24T15:01:56","date_gmt":"2026-08-24T09:31:56","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217142"},"modified":"2026-08-24T15:01:58","modified_gmt":"2026-08-24T09:31:58","slug":"straddle-strategy-nifty-next-50","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/straddle-strategy-nifty-next-50\/","title":{"rendered":"Straddle Strategy Nifty Next 50: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Nifty Next 50 level used in this article: Rs 73,863 (as of 24 Aug 2026). Next monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 25. Weekly options on Nifty Next 50 were discontinued in November 2024 under SEBI’s one weekly index per exchange rule; only monthly contracts remain.<\/em><\/p>\n

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

The long straddle strategy Nifty Next 50 traders use involves buying an at the money call and an at the money put on the same strike and the same monthly expiry, creating a trade that may profit from a large move in either direction. With Nifty Next 50 at Rs 73,863, the net debit paid is the maximum loss, while profit potential is substantial if the index moves significantly before the monthly expiry. The straddle strategy Nifty Next 50 may be considered before major scheduled events, but because Nifty Next 50 only trades monthly contracts, the position typically runs for several weeks, giving more time for a move to develop but also more exposure to time decay along the way.<\/p>\n<\/div>\n

The straddle strategy Nifty Next 50 is a directional agnostic trade: you do not need to predict whether the index will go up or down, only that it will move enough in one direction to cover the cost of both options by monthly expiry. Because Nifty Next 50 weekly contracts were discontinued in November 2024, every this strategy traders build today uses the monthly cycle, which is structurally different from a Nifty 50 weekly straddle in both cost and holding period.<\/p>\n

Time decay works against the straddle strategy Nifty Next 50 every day the index stays near ATM. Because the monthly cycle is longer than a weekly one, the position accumulates more total theta decay over its life, even though the daily decay rate is typically slower earlier in the cycle and faster as the monthly expiry approaches.<\/p>\n

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