BSE Ltd.
Education

Part 8 Trading Master Class

25
Long Put – Best for Bearish Markets

This is the opposite of a long call.

How it works

You buy a put option.

Profit when price drops below strike.

When to use

You expect a sharp fall.

You want a cheap hedge for your portfolio.

Risk and reward

Risk: Limited to premium paid.

Reward: Large profit as price falls.

Example

You buy 48,000 put on Bank Nifty for ₹80.
If BN falls to 47,500, the option may rise to ₹600.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.