S&P CNX NIFTY INDEX FUTURES
Education

Part 1 Master Candle Stick Pattern

36
Put Options Explained

A put option increases in value when the price of the underlying asset falls.

Example:
Nifty is at 20,000. A trader buys a Nifty 19,900 Put Option.
If Nifty falls below 19,900, the put option value rises.

Put option buyers expect the price to go down.
Put option sellers expect the price to stay above the strike.

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