Discover how to navigate Reliance’s price swings with the Iron Fly options strategy.
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I’ve executed an Iron Fly Condor strategy in Reliance. I’ve sold 1470-put for ₹25.9 and 1470-call for ₹34.7. And I’m long on 1450-put at ₹18.2 and 1490-call at ₹24.5. Breakeven prices are ₹1,452 and ₹1,488. How to adjust the butterfly legs when Reliance spot price breaches the lower strike price? – Narayanan
Reliance Industries (₹1,413.60): I assume the Iron Fly was initiated when the stock was trading close to ₹1,470. A sharp 3 per cent decline on Monday pushed the price below the lower strike. However, the rapid erosion in the 1470-call has acted as a buffer and, despite the steep fall, the overall mark-to-market loss remains limited.
As for adjustments, the approach should depend on the stock’s behaviour from the current level. Reliance has a strong support around ₹1,400, which coincides with its 50-week moving average. This raises the possibility of a near-term rebound.
That said, the broader price structure remains bearish. The stock has failed to cross the ₹1,600 resistance on two occasions since July last year, suggesting that any recovery may be capped. A deeper correction towards ₹1,320 cannot be ruled out before the stock enters its next consolidation phase, a more favourable environment for neutral strategies such as the Iron Fly.
Strategy-wise, below is what we suggest.
If the stock stages a rebound, hold the structure and exit all legs on a rise to ₹1,485, using the bounce to reduce risk.
If the stock continues to weaken, exit the entire position on a decisive break below ₹1,400. Beyond this level, losses can accelerate despite the long 1450-put hedge, owing to the widening delta gap between the short 1470-put and the protective put.
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Published on January 20, 2026
