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Long Put option strategy beginners Nifty example

Long Put options strategy is just opposite of Long Call Options strategy . Long Put means Buy Put options or buy PE. This helps you make money even if Stock prices moves down or Index is going down which is not possible in case of Swing trading or normal investment. So it is also used by Investor to protect their capital or gain profit if the stock prices move down for their portfolio.

In Swing trading or investment you need the Stock prices to move up for making money. So if market is bearish then they do not help much. In such scenario Buying Put can help. You can make money if the underlying stock prices move down or the indexes move down. Put option is bit complicated compared to Call option as buying is more intuitive for traders. You can think it as making profit if prices going down to simplify the things whereas making profit with prices moving up being Call.

You can watch either the English Video or Hindi Video to understand the strategy in details.If you are new to Options trading then I would suggest you to watch or read the Getting Started tutorial on Options . That will help you understand the strategies as well.

English Video

Hindi Video

Conclusion

Note this strategy is fundamental building block of Options Strategy which we will discuss in other chapters. The Long Call and Long Put are most basic operations you can perform as Options trader. So you need a clear understanding of these before moving ahead with other ones. So make sure you watch the video and get clear understanding of both methods before moving forward.

Most of the other strategies we will discuss later are combination of two techniques. So you need to have understanding of both techniques to understand them else you will be unable to execute the techniques properly causing loss. Also it is better to have a clear understanding of the things before moving ahead for clear understanding as you will be banking your hard earned money so better to have informed decision instead of casual one.

There is also element of risk associated with every technique that also you should be have clarity else you may lose your capital. So better to understand things like