Analysis of strain in Jurassic argillites forming part of the folded and thrusted sedimentary succession of the Lagonegro basin (southern Italian Apennines) has been carried out using ellipsoid-shaped ‘reduction’ spots as strain markers. Most of the determined finite strain ellipsoids are of oblate type and show a peculiar distribution of the maximum extension direction (X), with maxima either subparallel or subperpendicular to the local fold axes. Using the strain matrix method, two different deformation histories have been considered to assist the interpretation of the observed finite strain pattern. A first deformation history involved vertical compaction followed by horizontal shortening (occurring by a combination of true tectonic strain and volume loss), whereby all strain is coaxial and there is no change in the intermediate axis of the strain ellipsoid. By this type of deformation sequence, which produces a deformation path where total strain moves from the oblate to the prolate strain field and back to the oblate field, prolate strain ellipsoids can be generated and may be recorded where tectonic deformation has not been large enough to reverse pretectonic compaction. This type of deformation history may be of local importance within the study area (i.e. it may characterize some fold hinge regions) and, more generally, is probably of limited occurrence in deformed pelitic rocks. A second deformation sequence considered the superposition of pre-tectonic compaction and tectonic strain consisting of initial layer-parallel shortening followed by layer-parallel shear (related to flexural folding). Also in this instance, volume change during tectonic deformation and tectonic plane strain have been assumed. For geologically reasonable amounts of volume loss due to compaction and of initial layer-parallel shortening, this type of deformation history is capable of producing a deformation path entirely lying within the oblate strain field, but still characterized by a changeover, during deformation, of the maximum extension axis (X) from a position parallel to the fold axis to one perpendicular to it. This type of deformation sequence may explain the main strain features observed in the study area, where most of the measured finite strain ellipsoids, determined from the limb regions of flexural folds, display an oblate shape, irrespective of the orientation of their maximum extension direction (X) with respect to the local structural trends. More generally, this type of deformation history provides a mechanism to account for the predominance of oblate strains in deformed pelitic rocks.