Put Option in Share Market

What Are The Basics Of Put Option?

Generally, many investors, who are content with trading call options, are likely to avoid trading the put options. Put options add a wholly new facet to stock market investing. It is the repeal of a call option where a put gives the owner the right to sell a stock at the strike price within a specified time.
Options give traders a lot of leverage in contrast to sharing trading, and thus most investors are concerned about the huge profit impending extended by options trading. When you own a put option, you get the right to sell at the strike price until the time the put option expires. Your maximum profit from trading a put option is got hold of if the stock tanks down to zero.
The maximum likely loss you need to bear on a put option is the premium value you paid to purchase the contract. This occurs when the options contract does not work in your support, and you let it expire.
You are obligated to buy from the put holder at the strike price when you short a put option. You are obligated to buy from the put holder at the strike price when you short a put option. Premiums for risk are obtained. The real chance of selling a put option is zero. For hedging position in the stock market, put options are used.
Trading options can be risky when you start trading the nifty options. They offer colossal leverage that maximizes your profit percentage. On the other hand, if the trade does not work in your support, an opportunity will also increase the loss percentage.
Appropriate risk management techniques and sound knowledge are essential to trade and profit in the options market.