{"id":217617,"date":"2026-08-25T12:33:29","date_gmt":"2026-08-25T07:03:29","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217617"},"modified":"2026-08-25T12:33:30","modified_gmt":"2026-08-25T07:03:30","slug":"butterfly-spread-sensex","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/butterfly-spread-sensex\/","title":{"rendered":"Butterfly Spread 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 butterfly spread Sensex is a three strike, four leg options strategy that combines a bull call spread and a bear call spread sharing a common middle strike, creating a payoff that peaks when Sensex closes exactly at the centre strike at the monthly expiry. With Sensex at Rs 77,538, the butterfly spread Sensex costs a small net debit at entry, which is the maximum loss, while the maximum profit is concentrated in a narrow zone around the centre strike. The butterfly spread Sensex may be considered when a trader has a precise view that the index will pin near a specific level by the monthly expiry.<\/p>\n<\/div>\n

The this strategy differs from the iron condor in an important way: rather than offering a wide profit zone between two short strikes, the butterfly spread Sensex concentrates its maximum profit in a narrow band around a single centre strike. This makes it a higher precision, generally lower cost strategy, but one that requires the index to land close to a specific level rather than simply staying within a broader range.<\/p>\n

Because Sensex only trades monthly contracts, the the position requires the index to be near the chosen centre strike specifically at the monthly expiry, which is a longer and less certain prediction window than a Nifty 50 weekly butterfly would require.<\/p>\n

Click Here – Get Free Investment Predictions<\/strong><\/a><\/p>\n

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