{"id":217243,"date":"2026-08-24T16:01:19","date_gmt":"2026-08-24T10:31:19","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217243"},"modified":"2026-08-24T16:01:20","modified_gmt":"2026-08-24T10:31:20","slug":"short-strangle-nifty-50","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/short-strangle-nifty-50\/","title":{"rendered":"Short Strangle Nifty 50: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Nifty 50 level used in this article: Rs 24,216 (as of 24 Aug 2026). Next weekly (Tuesday) and monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 65. Nifty 50 retained its weekly expiry slot on NSE under SEBI’s one weekly index per exchange rule; Bank Nifty, Nifty Financial Services, and Nifty Midcap Select lost their weekly contracts instead, in November 2024. Both weekly and monthly Nifty 50 contracts remain available.<\/em><\/p>\n

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

The short strangle Nifty 50 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 Nifty 50 at Rs 24,216, the short strangle Nifty 50 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 Nifty 50 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 Nifty 50 weekly options were discontinued in November 2024, the short strangle Nifty 50 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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