Sticky strike is a model assumption about how implied volatility behaves as the underlying asset price changes. Under sticky strike, each option at a specific absolute strike price retains its implied volatility regardless of where the underlying asset currently trades. This means the implied volatility surface does not shift as the market moves — only the moneyness of each strike changes. In practice, sticky strike behaviour is observed in stable, range-bound markets where the market's risk perception is anchored to fixed price levels rather than relative positions. For Indian options traders, the distinction between sticky delta and sticky strike has direct P&L implications for options strategies because it determines how the volatility of at-the-money options changes as the underlying moves, affecting the gamma and vega P&L of hedged portfolios.
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