--- title: "Short straddle or short strangle: what is the “success rate”" description: "A success rate counts how often a short straddle or strangle expires inside its breakevens." source_url: "https://www.rupeecase.com/learn/questions/short-straddle-success-rate" --- A short straddle keeps its premium only between two breakevens Profit and loss at expiry for one lot of an at the money short straddle, priced at the settle prices of 10 Jun 2026. Outside the breakevens the loss grows with each point, on either side. Source: NSE end of day data, computed by RupeeCase. As of 10 Jun 2026. Take an at the money short straddle on the 30 Jun 2026 Nifty chain as it stood on 10 Jun 2026. The chart shows the profit and loss at expiry for one lot. The seller keeps the premium only between two breakevens, one above and one below the index. The success rate is the share of expiries that settle inside that band. A straddle has a narrow band, so its rate is high only if the market keeps quiet. A strangle with wider strikes wins more often but collects less premium. Change the strikes and the rate changes, which is why the rate alone cannot compare two positions. Expectancy puts it on one scale: the win rate times the average win, minus the loss rate times the average loss, less costs. A seller who wins nine times in ten can still lose money if the tenth loss is bigger than the nine gains together. Gap days, when the index opens far beyond a breakeven, are where that tenth loss comes from. Costs apply on every round trip. STT on an option sale is 0.15% of premium from 1 Apr 2026, and margin stays blocked for as long as the short position is open. The seller carries capital risk as well as the tail. A rate measured over a few months describes that window only. This page does not present a success rate as a strategy result. Read the payoff, the expectancy and the largest loss together. **Before you trade.** Derivatives trading carries a high risk of loss. SEBI's study "Profitability of Individual Traders in the Equity Derivatives Segment (FY25 to FY26)" (August 2026) found that 87.7% of individual traders in equity F&O made net losses in FY26, with aggregate net losses of Rs 91,685 crore. [Read the SEBI study](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) Short straddle or short strangle: what is the “success rate” and the risk?A success rate counts how often a short straddle or strangle expires inside its breakevens, and it says nothing about how large the loss is on the days it fails. The measure that decides the result is expectancy, the average outcome per trade after every loss is counted, and the risk sits in the gap days that a success rate hides. Incomplete as stated. A success rate shows how often the index stayed inside the band, not whether the position made money. Judge the position by expectancy and the largest loss, not by the share of expiries that stayed inside the band. LGo deeper ## Where Learn teaches this. [Go deeperBuyer or seller: payoffs, margin, win rate and expectancy9 min, Beginner](/learn/path-14/module-14-3-option-buyer-vs-seller)[Go deeperStraddles and strangles, long and short8 min, Intermediate](/learn/path-17/module-17-5-straddles-and-strangles)[Try itRisk of ruinWin rate, payoff and size, simulated to the chance of losing the account.](/learn/tools/risk-of-ruin) SSources ## Go to the source. 3 sources, NSE the most cited The publisher of each source listed below. Source: Module undefined source list. 1. [NSE option chain page (this page reads dated end of day files only)](https://www.nseindia.com/option-chain) NSE 2. [NSE circular NSE/FATAX/73524 (STT rates from 1 Apr 2026)](https://nsearchives.nseindia.com/content/circulars/FATAX73524.pdf) NSE 3. [SEBI, Profitability of individual traders in the equity derivatives segment, FY25 to FY26 (Aug 2026)](https://www.sebi.gov.in/reports-and-statistics/research/aug-2026/study-profitability-of-individual-traders-in-the-equity-derivatives-segment-fy25-fy26-_103835.html) SEBI ?Questions people ask ## Related questions. 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