Bearish to Neutral - want stable or falling prices
| Strategy Type | Hybrid - Bearish Short Premium with Downside Protection |
| Market Outlook | Bearish to Neutral - want stable or falling prices |
| Risk Profile | No/Minimal Downside Risk (if credit ≥ width), Unlimited Upside Risk |
| Reward Profile | Maximum Credit Received when price between short put and call |
| Time Horizon | Weekly (5 days) or Monthly (21-30 days) |
| Capital Requirement | SPAN margin Rs.60,000-80,000 per lot |
| Best Used When | Bearish bias in elevated IV environment, want strangle-like income without downside crash risk |
| Trading Hours | 9:15 AM - 3:30 PM IST |
| Weekly Expiry | Thursday (NIFTY, BANKNIFTY, FINNIFTY) |
| Monthly Expiry | Last Thursday of the month |
| Type | SPAN + Exposure Margin |
| Naked Put Requirement | Significant margin for uncovered put |
| Typical Margin Range | ₹80,000 - ₹1,50,000 per lot for index options |
| Margin Calculator | Use NSE SPAN calculator for exact requirements |
| Margin Benefit | Call spread portion reduces overall margin slightly |
| Stt On Premium | 0.05% on sell side (options) |
| Stt On Exercise | 0.125% on intrinsic value if ITM at expiry |
| Income Classification | Business income for frequent traders |
| Gst On Brokerage | 18% on brokerage charges |
| Best Instruments | NIFTY and BANKNIFTY weekly/monthly options |
| Avoid | Deep OTM options in illiquid stocks |
| Optimal Strikes | ATM puts, slightly OTM calls for best liquidity |
| Bid Ask Spread | Expect 1-3 points spread on liquid index options |
| Typical Atm Put Premium | ₹200-350 for weekly, ₹450-700 for monthly |
| Typical Otm Call Spread | ₹80-150 net credit for 200-point wide spread |
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