{"id":218114,"date":"2026-08-25T10:54:56","date_gmt":"2026-08-25T05:24:56","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=218114"},"modified":"2026-08-25T10:54:59","modified_gmt":"2026-08-25T05:24:59","slug":"strip-strategy-sensex","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/strip-strategy-sensex\/","title":{"rendered":"Strip Strategy 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 strip strategy Sensex buys one at the money call and two at the money puts, all on the same strike and expiry, creating a weighted version of the long straddle that profits more from a downside move than an upside move of equal size. With Sensex at Rs 77,538, the strip strategy Sensex may be considered when a trader expects a large move in Sensex but leans bearish on the direction, wanting greater participation in a decline while still retaining some protection if the index rises instead. The net debit paid is the maximum loss, occurring if the index closes exactly at the strike at expiry.<\/p>\n<\/div>\n

The strip strategy Sensex modifies the standard long straddle by adding an extra put, shifting the payoff so that an equal magnitude move produces a larger gain on the downside than on the upside. This makes the this strategy a directional variant of the straddle, suited to a trader with a large move view and a bearish lean, rather than a purely neutral one. It is the mirror image of the strap strategy, which weights the payoff toward the upside instead.<\/p>\n

Because it involves buying three options in total rather than two, the strip strategy Sensex costs more upfront than a standard long straddle, and this higher cost should be weighed against the benefit of the added downside participation.<\/p>\n

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