{"id":217267,"date":"2026-08-24T15:46:59","date_gmt":"2026-08-24T10:16:59","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217267"},"modified":"2026-08-24T15:47:00","modified_gmt":"2026-08-24T10:17:00","slug":"long-strangle-bank-nifty","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/long-strangle-bank-nifty\/","title":{"rendered":"Long Strangle Bank Nifty: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Bank Nifty level used in this article: Rs 57,762 (as of 21 Aug 2026). Next monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 30. Weekly options on Bank Nifty 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 strangle Bank Nifty involves buying an out of the money call and an out of the money put on the same monthly expiry, creating a trade that may profit from a large move in Bank Nifty in either direction. With Bank Nifty at Rs 57,762, the net debit paid at entry is the maximum loss, generally lower than a comparable long straddle because both options are out of the money rather than at the money. The long strangle Bank Nifty may be considered before major events, though the index must move further than it would need to for a straddle before either option gains meaningful value.<\/p>\n<\/div>\n

The long strangle Bank Nifty trades a lower entry cost for a wider breakeven range compared with a long straddle. Because both legs start out of the money, the combined premium is smaller, but the index needs to move beyond one of the two further apart breakeven points to generate a profit. Because Bank Nifty only trades monthly contracts, the this strategy typically runs across a full month rather than a single week.<\/p>\n

This strategy is commonly used when a trader expects a significant move in Bank Nifty but wants to reduce the upfront cost compared with an at the money straddle, accepting a larger required move in exchange.<\/p>\n

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