This NIFTY trade sells 1 lot of puts and buys 1 lot of puts and buys 1 lot of calls and sells 1 lot of calls, with ₹6,701.25 paid in net option premium.
Before charges, it makes money at expiry below 25,310.65 or above 25,489.35.
The most it can lose is ₹6,701.25 before charges.
Do it, see why, prove it
Practise the basket on the desk, then check what you learned with the options questions.
A past weekEntered at the close on 3 Jul 2025. NIFTY was 25,405.3. First expiry 10 Jul 2025, 7 days later.
At 25,100 on 10 Jul 2025: +₹798.75Before charges · Before expiry: +₹84.48
Profit and loss The solid line shows the value before expiry. The dashed line shows the first expiry date. Green is profit. Red is loss. The orange ring is the result that week.
The solid line shows the value before expiry. The dashed line shows the first expiry date. Green is profit. Red is loss. The orange ring is the result that week.
24,842.7–25,214.23 · Before charges25,214.23–25,585.77 · Before charges25,585.77–25,957.3 · Before charges
Read the true maximum loss above the chart. Check each leg's before using a basket.
What time changes
An option loses its as expiry gets closer. Keep the index still and move the time slider. A later expiry still has time left when the front leg settles.
NIFTY 25,405.3 · Before charges
3 Jul₹0.007 days left
4 Jul−₹50.516 days left
7 Jul−₹343.073 days left
8 Jul−₹571.312 days left
9 Jul−₹1,079.011 days left
10 Jul−₹6,303.750 days left
When it fits and when it does not
Choose the shape for the move you want to understand. A spread can cap both gains and losses. A sold option can leave a large loss. More legs do not make a basket safe.
Common mistakes
Check every leg, its ratio and its expiry. Finishing does not mean you made a profit. Subtract the premium and charges. A capped chart does not cap an unbounded loss.
Charges are shown separately. An option held to expiry is charged differently.
Your strategy
Leg
Contract
Expiry
Lots
Entry premium
Sold
NIFTY 25,300 Put
10 Jul 2025
1
₹108.00
Bought
NIFTY 25,400 Put
10 Jul 2025
1
₹146.45
Bought
NIFTY 25,400 Call
10 Jul 2025
1
₹182.90
Sold
NIFTY 25,500 Call
10 Jul 2025
1
₹132.00
See every number
Implied Volatility (IV)
Implied volatility is the market's assumption about how much the underlying will move before expiry.