{"id":217621,"date":"2026-08-25T12:27:34","date_gmt":"2026-08-25T06:57:34","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217621"},"modified":"2026-08-25T12:27:36","modified_gmt":"2026-08-25T06:57:36","slug":"butterfly-spread-nifty-it","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/butterfly-spread-nifty-it\/","title":{"rendered":"Butterfly Spread Nifty IT: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Nifty IT level used in this article: Rs 38,548 (as of 18 Dec 2025 (most recently confirmed close; verify current level on NSE)). Next monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 25. Weekly options on Nifty IT 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 butterfly spread Nifty IT 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 Nifty IT closes exactly at the centre strike at the monthly expiry. With Nifty IT at Rs 38,548, the butterfly spread Nifty IT 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 Nifty IT 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 Nifty IT 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 Nifty IT 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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