{"id":217269,"date":"2026-08-24T15:44:37","date_gmt":"2026-08-24T10:14:37","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217269"},"modified":"2026-08-24T15:44:39","modified_gmt":"2026-08-24T10:14:39","slug":"long-strangle-sensex","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/long-strangle-sensex\/","title":{"rendered":"Long 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 long strangle Sensex 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 Sensex in either direction. With Sensex at Rs 77,538, 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 Sensex 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 Sensex 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 Sensex 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 Sensex 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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