Put option gives the trader the right to sell the option of an underlying security to the writer for certain number of fixed shares (as per the lot size) at certain price of an expiry contract. As call option, this too available for all the stock which are available in future contracts. Also, Put options are similar for nifty, bank nifty, cnx IT, mini nifty and all other indices. The capital margin required to buy a put option is same as the margin required to buy a call option
Features of this article:
Every put option rise with respect to its spot and future price’s fall.
These falls with respect to its spot price’s rise.
These are best suitable to buy when markets are bearish.
These are best suitable to short when markets are bullish.
These are hedged with Nifty long positions to reduce risk appetite.
Posted on: 2016-07-27 16:47:47 Updated on: 2016-07-27 16:47:47