Strip Strategy

Options Intermediate NIFTY Options BANKNIFTY Options Stock Options

Expecting Large Move with Bearish Bias

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Quick Reference

Strategy Type Long Straddle with Extra Put (Bearish Bias Volatility Play)
Market Outlook Expecting Large Move with Bearish Bias
Risk Profile Limited Risk (Total Premium Paid)
Reward Profile Unlimited Profit Potential (Higher on Downside)
Time Horizon 1-4 weeks
Capital Requirement High (3 Long Options)
Margin Type Premium Payment Only (No Margin Required)
Best Used When Expecting significant volatility with higher probability of downside move

When to Use This Strategy

Expecting significant volatility with higher probability of downside move

India-Specific Notes

Lot Sizes

NIFTY 25 units per lot
BANKNIFTY 15 units per lot
Stock Options Varies by stock

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