{"id":217971,"date":"2026-08-25T11:38:16","date_gmt":"2026-08-25T06:08:16","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=217971"},"modified":"2026-08-25T11:38:18","modified_gmt":"2026-08-25T06:08:18","slug":"put-ratio-backspread-bank-nifty","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/put-ratio-backspread-bank-nifty\/","title":{"rendered":"Put Ratio Backspread 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 put ratio backspread Bank Nifty sells one put at a higher strike and buys a larger number of puts, typically two, at a lower strike, on the same expiry. This is the mirror image of the call ratio backspread, applied to the downside instead of the upside. With Bank Nifty at Rs 57,762, the put ratio backspread Bank Nifty has a defined maximum loss that occurs at or near the lower strike, but substantial profit potential, limited only by the index falling to zero, if Bank Nifty declines significantly beyond that point, since the extra long put has no offsetting short put. The put ratio backspread Bank Nifty may be considered when a trader expects either a large decline or, in some structures, is comfortable profiting modestly if the index stays flat or rises, depending on whether the position is entered for a credit.<\/p>\n<\/div>\n

The this strategy inverts the logic of a simple bear put spread: instead of buying and selling an equal number of puts, it buys more puts than it sells. This shifts the exposure so that a large decline in Bank Nifty produces substantial profit, while the loss is capped at a specific, calculable level in the middle zone between the strikes.<\/p>\n

Because the put ratio backspread Bank Nifty buys more options than it sells, it is often structured for a smaller net debit, and in some cases even a net credit, depending on the strikes and the implied volatility skew between them, which is often more pronounced on the put side of the index options market.<\/p>\n

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