{"id":218163,"date":"2026-08-25T11:04:52","date_gmt":"2026-08-25T05:34:52","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=218163"},"modified":"2026-08-25T11:04:54","modified_gmt":"2026-08-25T05:34:54","slug":"iron-butterfly-nifty-next-50","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/iron-butterfly-nifty-next-50\/","title":{"rendered":"Iron Butterfly 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 iron butterfly Nifty Next 50 combines a short at the money call and a short at the money put, at the same strike, with a long out of the money call and a long out of the money put as protective wings on either side, all on the same expiry. With Nifty Next 50 at Rs 73,863, the iron butterfly Nifty Next 50 collects a net credit at entry, which is the maximum profit, realised when the index closes exactly at the centre strike at expiry. Unlike a standard butterfly spread, which uses only calls or only puts, the iron butterfly Nifty Next 50 mixes both calls and puts, but the two structures produce a very similar defined risk payoff shape.<\/p>\n<\/div>\n

The this strategy can be thought of as a defined risk version of a short straddle: the short call and short put at the centre strike generate the bulk of the premium, similar to a short straddle, but the long wings on either side cap the otherwise unlimited risk that a naked short straddle would carry.<\/p>\n

Because the short strikes in the iron butterfly Nifty Next 50 are both at the same at the money level, the position has a narrower profit zone than an iron condor, which separates its short strikes, but it typically offers a larger net credit for that reduced profit zone width.<\/p>\n

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