{"id":217623,"date":"2026-08-25T13:08:58","date_gmt":"2026-08-25T07:38:58","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217623"},"modified":"2026-08-25T13:08:59","modified_gmt":"2026-08-25T07:38:59","slug":"butterfly-spread-nifty-next-50","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/butterfly-spread-nifty-next-50\/","title":{"rendered":"Butterfly Spread Nifty Next 50: Setup, Payoff and Risk Guide"},"content":{"rendered":"
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Nifty Next 50 level used in this article: Rs 73,863 (as of 24 Aug 2026). Next monthly (last Tuesday of the month) expiry: 25 August 2026 (Tuesday). Lot size 25. Weekly options on Nifty Next 50 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 Next 50 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 Next 50 closes exactly at the centre strike at the monthly expiry. With Nifty Next 50 at Rs 73,863, the butterfly spread Nifty Next 50 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 Next 50 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 Next 50 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 Next 50 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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