Part 3 Learn Institutional Trading

Put Option Simplified

A put option is useful when you expect the market to go down.

When you buy a put, you are paying a premium for the right to sell.

If the underlying falls below your strike, your put gains value.

Example:
BANK NIFTY at 48,000. You buy a 48,000 PE.
If it falls to 47,500, your put becomes profitable.

Again, your maximum loss is limited to the premium.