Part 6 Learn Institutional Trading Cash-Secured Put – Best for Buying Stocks at Lower Price
This is the safest way to use options when you want to accumulate stocks at a discount.
How it works
You set aside cash.
You sell a put option at a lower strike price.
If the stock falls below strike, you get the shares at a discount.
If not, you keep the premium.
When to use
You want to buy shares at cheaper levels.
You are comfortable owning the stock.
Risk and reward
Risk: You may need to buy shares if the stock falls heavily.
Reward: Limited to premium collected.
Example
Bank Nifty at 50,000
Sell 49,500 put at ₹100 premium
If Bank Nifty stays above 49,500 → you earn ₹100 × lot size.
