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Understand what is put option in Hindi – strike, premium, profit calculation, and bearish trading strategy. Complete guide for beginners.
Published by The Retail Trader · AUG 14, 2026 · Features
Understand what is put option in Hindi – strike, premium, profit calculation, and bearish trading strategy. Complete guide for beginners.
A put option is a contract that gives you the right — not the obligation — to sell a stock/index at a pre-decided price (strike price). You pay premium for this right.
In simple words:
• Do you think the price of Reliance will come down?
• You buy a put of ₹2,800 strike at ₹40 premium.
• If Reliance becomes ₹2,750 → Your profit = ₹10/share (₹50 - ₹40)
• If Reliance stays at ₹2,850 → Your loss = ₹40 (premium only)
Put option = Bearish view. You expect the price to come down.
Call vs Put:
• Call = price will go up (bullish)
• Put = price will go down (bearish)
Cost: ₹60 × 50 shares = ₹3,000
Keep these seven points in mind:
• 24,700 — Value: 0, Profit/Loss: -₹3,000 (max loss)
• 24,600 — Value: 0, Profit/Loss: -₹3,000
• 24,560 — Value: 0, Profit/Loss: -₹3,000 (breakeven)
• 24,500 — Value: 0, Profit/Loss: -₹3,000
• 24,400 — Value: ₹5,000, Profit/Loss: +₹2,000
• 24,300 — Value: ₹10,000, Profit/Loss: +₹7,000
• 24,200 — Value: ₹15,000, Profit/Loss: +₹12,000
Breakeven: Strike - Premium = 24,500 - 60 = 24,440
Max loss: Premium = ₹3,000 (limited) Max profit: Strike - 0 - Premium = ₹2,22,000 (if Nifty goes to 0, theoretical)
Nifty at 24,600:
Keep these three points in mind:
• ITM — Strike: Above spot, Example: 24,700 PE, Logic: Strike > spot = put has intrinsic value
• ATM — Strike: At spot, Example: 24,600 PE, Logic: Strike = spot
• OTM — Strike: Below spot, Example: 24,500 PE, Logic: Strike < spot = time value only
Put buyers: Buy ATM or lightly ITM for best risk-reward.
Best Conditions:
• Bearish view — market down trend, weak stock
• High VIX expected to go higher (volatility = put premium up)
• Resistance rejection — the stock gets rejected at strong resistance.
• Bad news expected — poor results, sector downgrade
• 5-7+ days to expiry — time value preserved
Put as Hedging (Insurance):
• Portfolio is worth ₹10L (long stocks)
• There is tension of market crash
• Buy Nifty Put = portfolio insurance
• If market crashes → put profit offsets portfolio loss
• If market up → put premium loss = insurance cost (acceptable)
Strategy 1: Long Put (Simplest):
• Buy ATM/slightly ITM put
• Hold 2-5 days
• Target: 50-100% premium gain
• SL: 30-40% premium loss
Strategy 2: Bear Put Spread:
• Buy 1 ITM Put + Sell 1 OTM Put
• Lower cost than naked put
• Max profit = spread width - net premium
• Max loss = net premium paid
Strategy 3: Protective Put (Hedging):
• Hold shares + Buy Put
• = downside protection
• If stock crashes → put profit covers loss
• Cost = put premium (like insurance premium)
Keep these five points in mind:
• OTM put kharidna — 70% OTM expire zero
• hold on expiry — theta kills premium
• Trading without an SL — the premium can go to zero
• Naked put without hedging — theta + time = loss even if direction right
• Buying puts every time — markets go up 70% of the time, puts lose more often
Limited (strike - premium). If Nifty 24,500 PE at ₹60, max profit = 24,500 - 0 - 60 = 24,440 × 50 = ₹12,22,000 (if Nifty goes to 0 — impossible practically).
Bearish traders, hedgers (portfolio protection), arbitrageurs.
Haan — straddle/strangle strategy. Advanced. Beginners avoid.
theretailtrader.org/index-details/NSEI → Options Then. Full option chain available.
Hey! Protective put = portfolio insurance. Protects from crashes. Cost = premium.
Option chain: theretailtrader.org/index-details/NSEI Pro (intraday + alerts): theretailtrader.org/pricing Telegram: @theretailtrader_in
Educational only. Options involve risk. NOT investment advice.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.