{"id":218145,"date":"2026-08-25T10:56:24","date_gmt":"2026-08-25T05:26:24","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=218145"},"modified":"2026-08-25T10:56:25","modified_gmt":"2026-08-25T05:26:25","slug":"guts-strategy-nifty-next-50","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/guts-strategy-nifty-next-50\/","title":{"rendered":"Guts Strategy 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 guts strategy Nifty Next 50 sells an in the money call and an in the money put, both on the same expiry, at strikes on opposite sides of the current index level. With Nifty Next 50 at Rs 73,863, the short guts strategy Nifty Next 50 collects a substantial net credit upfront because both options carry intrinsic value in addition to time value, but it carries unlimited risk on both sides, similar to a short strangle, and requires the index to move enough for the combined intrinsic value to be overcome before expiry for the position to reach a loss. The guts strategy Nifty Next 50 is less commonly used than the short strangle for premium collection because of the larger capital and margin typically required.<\/p>\n<\/div>\n

The this strategy is essentially a strangle built with in the money strikes instead of out of the money strikes. Selling in the money options generates a much larger credit upfront, since the premium includes substantial intrinsic value on both legs, not just time value. This larger credit provides a wider cushion before the position moves into a loss compared with a standard short strangle built from out of the money strikes.<\/p>\n

Because of the large notional value tied up in in the money options, the guts strategy Nifty Next 50 typically requires more margin than an equivalent short strangle, and the mechanics of managing two in the money legs simultaneously add a layer of complexity not present in out of the money strategies.<\/p>\n

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