Strategies · Lesson 07 of 14 · Lab
The long and short strangle
A strangle uses two out-of-the-money strikes rather than one at the money, which lowers the cost and widens the distance required. On 22 September 2026 the NIFTY 23,550 call and 23,350 put cost ₹30.50 together, against ₹99.35 for the straddle, with breakevens at 23,320 and 23,581. The index closed at 23,329 and the long strangle lost ₹9.50.
NIFTY weekly expiry, 22 September 2026 · MarketCue one-minute option-chain capture
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Prices captured at the open on Tuesday, 22 September 2026. NIFTY spot at the open: 23,460. The highlighted row is nearest the money.
NIFTY closed at 23,329, down 131 points from the open. Bought 23,350 PE at ₹12.65 → settled ₹20.95. Bought 23,550 CE at ₹17.85 → settled ₹0.05. Net loss of ₹9.50 per unit, or −31% of what was put up. This was the expiry, so those closing prices are settlement values.
Cheaper, and further to travel
Both legs of a strangle start out of the money, so both are cheaper: ₹17.85 for the 23,550 call and ₹12.65 for the 23,350 put, ₹30.50 in total against the straddle’s ₹99.35.
The saving is paid for in distance. The strangle’s breakevens sat at 23,320 and 23,581, a band 261 points wide. The straddle’s were 23,351 and 23,550, a band of 199. The cheaper structure needs the larger move.
Nine points
NIFTY closed at 23,329. The long strangle’s lower breakeven was 23,320, nine points below. The put settled at ₹20.95 against ₹30.50 paid for the pair, so the structure lost ₹9.50.
On the identical session the straddle returned ₹21.85. The direction was right for both; only one of them had a breakeven close enough to reach. That gap of nine points is the entire difference in outcome, and it was decided when the strikes were chosen rather than by anything that happened during the day.
Common questions
What is the difference between a straddle and a strangle?
A straddle uses one strike for both legs, usually at the money. A strangle uses two out-of-the-money strikes. The strangle costs less and needs a larger move: on 22 September 2026, ₹30.50 against ₹99.35, with a breakeven band 261 points wide against 199.
Is a short strangle safer than a short straddle?
It has a wider band before losses begin and collects a smaller credit. Neither structure caps the loss beyond its breakevens.
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How these figures are produced
Every price on these pages was traded on the exchange and is read from our own option-chain capture, which records the NIFTY and SENSEX chains once a minute through the session. Each page names the session its figures come from.
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