Part 12 Trading Master Class

How Put Options Work

A Put Option gives the buyer the right to sell the underlying asset at the strike price.

You buy a put when you expect the market to fall.

Example:
Nifty at 22,000
You buy 21,800 PE at ₹45 premium.

If Nifty drops to 21,600:
Intrinsic value = 21,800 – 21,600 = ₹200
Profit = 200 – 45 = ₹155

If Nifty stays above 21,800, you lose only the premium.