Batman option strategy
Batman places a call butterfly above the market and a put butterfly below it. The payoff has two peaks, one on each side, that look like the ears of a bat.
Payoff at expiry
Nifty, lot size 65 · Nifty future 25,151 · 17 Nov 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| BUY | OTM Call | 25,200 | 1 | 65 | ₹89.99 |
| SELL | OTM Call | 25,250 | 2 | 130 | ₹70.25 |
| BUY | OTM Call | 25,300 | 1 | 65 | ₹53.81 |
| BUY | OTM Put | 25,100 | 1 | 65 | ₹88.99 |
| SELL | OTM Put | 25,050 | 2 | 130 | ₹69.18 |
| BUY | OTM Put | 25,000 | 1 | 65 | ₹52.69 |
How it works
- Buy 1 OTM call at the 25,200 strike for ₹89.99, paying the premium.
- Sell 2 OTM calls at the 25,250 strike for ₹70.25 each, collecting the premium.
- Buy 1 OTM call at the 25,300 strike for ₹53.81, paying the premium.
- Buy 1 OTM put at the 25,100 strike for ₹88.99, paying the premium.
- Sell 2 OTM puts at the 25,050 strike for ₹69.18 each, collecting the premium.
- Buy 1 OTM put at the 25,000 strike for ₹52.69, paying the premium.
- You pay a net ₹430 upfront for the position. This is the most you can lose.
Below 25,007 you lose, up to ₹430.
Between 25,007 and 25,094 you profit, up to ₹2,806.
Between 25,094 and 25,207 you lose, up to ₹430.
Between 25,207 and 25,295 you profit, up to ₹2,778.
Above 25,295 you lose, up to ₹430.
Set-up: Buy 1 lot OTM Call, Sell 2 lots higher OTM Calls, Buy 1 lot next higher Call; Buy 1 lot OTM Put, Sell 2 lots lower OTM Puts, Buy 1 lot next lower Put.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 23,650 | −6% | −₹430 |
| 24,400 | −3% | −₹430 |
| 24,900 | −1% | −₹430 |
| 25,150 | Unchanged | −₹430 |
| 25,400 | +1% | −₹430 |
| 25,900 | +3% | −₹430 |
| 26,650 | +6% | −₹430 |
How the Greeks affect it
When to use
When you expect a moderate move but not a big one, and are unsure of the direction.
- Low cost for two target zones.
- Risk is defined upfront.
- Does not need a view on direction.
Things to watch
- Loses if the underlying does not move at all.
- Six legs means more brokerage and slippage.
- Profit zones are narrow.
Batman: backtested on NSE data
Real backtests of this structure on NSE data, each with its exact rules, a year of results before and after costs, and where it made and lost money.
- Intraday Batman ratio246 trades
Batman: questions
What is a Batman strategy?
Batman places a call butterfly above the market and a put butterfly below it. The payoff has two peaks, one on each side, that look like the ears of a bat.
When should you use a Batman?
When you expect a moderate move but not a big one, and are unsure of the direction.
How do you set up a Batman?
Buy 1 lot OTM Call, Sell 2 lots higher OTM Calls, Buy 1 lot next higher Call; Buy 1 lot OTM Put, Sell 2 lots lower OTM Puts, Buy 1 lot next lower Put.
What is the maximum profit of a Batman?
Limited, earned if the underlying closes at either sold strike at expiry.
What is the maximum loss of a Batman?
Limited to the net debit paid, if the underlying stays at the current level or moves beyond the outer strikes.
What is the breakeven of a Batman?
With Nifty at 25,151, the example on this page breaks even at 25,007 and 25,094 and 25,207 and 25,295 at expiry.