---
title: "Short Straddle — options strategy"
type: "options-strategy"
topic: "Options strategies (Indian markets)"
category: "Income"
outlook: "Neutral / range-bound"
complexity: "advanced"
risk: "undefined (open-ended)"
slug: "short-straddle"
url: "https://learn-derivatives.tapetide.com/strategies/short-straddle"
markdown_url: "https://learn-derivatives.tapetide.com/strategies/short-straddle.md"
source: "DeltaDesk by Tapetide"
---

# Short Straddle

> **In plain English:** The opposite of a long straddle — you bet nothing much happens. You sell both a call and a put and collect rich premium. You win if the price stays pinned, but a big surprise move can hurt badly. Experts only.

**Category:** Income · **Market view:** Neutral / range-bound · **Complexity:** advanced · **Risk:** Undefined (open-ended)

## Structure

- Sell ATM call
- Sell ATM put

## Summary

Sell an ATM call and put — collect rich premium, profit if the price stays pinned.

## When to use it

Expecting low realised volatility / range-bound markets. Sell when IV is HIGH.

## Profit & loss

- **Max profit:** The total premium received (if price expires at the strike).
- **Max loss:** Unlimited on both sides — requires strict risk management and margin.

## Net Greeks profile

Short gamma, short vega, strongly positive theta.

## Margin

Margin-intensive (you sell options).

## Common mistakes

- No stop-loss or hedge — a gap move can be devastating.
- Selling in low IV for thin premium.

## India example

Sell a weekly ATM NIFTY straddle on a quiet expiry, delta-hedge with futures.

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**Build it live in the [DeltaDesk Strategy Lab](https://learn-derivatives.tapetide.com/tools/strategy-lab)** — tune strikes and see payoff + net Greeks update instantly.

*Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss. Tapetide is not a SEBI-registered research analyst or investment adviser.*