Part 1 Trading Master Class

How Put Options Generate Profit

A Put Option gives you the right to sell an asset at a fixed strike price.

You profit from a put when:

Underlying price moves below strike

Premium increases because market falls

Example:

Nifty at 22,000

You buy Put 22,000 PE for ₹100

Market falls to 21,700

Premium rises to ₹210

Your Profit = (210 – 100) × Lot Size

Put buyers make money when markets fall, similar to short selling but with limited risk.