Part 4 Learn Institutional TradingPut Options (PE)
A Put Option Buyer expects the market to go down.
A Put Option Seller expects market to remain above the strike.
1. PE Buyer Example
Bank Nifty = 49,000
You buy 48,800 PE at ₹100.
If Bank Nifty falls to 48,500:
Intrinsic value = 48,800 - 48,500 = 300
Profit = 300 - 100 = 200
If Bank Nifty stays above 48,800:
PE buyer loses premium.
2. PE Seller Example
You sell 48,800 PE at ₹100
If Bank Nifty stays above 48,800 → Seller profits full premium.
If it falls → Seller loses point by point.
