options trading for beginners - Put Selling explained

Disclaimer: Stock market trading is a risky affair. Please practice concept accurately before doing any trading. It is always advisable to consult your financial advisor before making any live trade. Options trading for beginners - Put Selling explained [Hindi] Hi Guys, In this video, I will explain what actually happens when you Sell put options. When you sell put option you are selling a right to some one and there by incurring an obligation. What kind of obligation? An obligation can be explained as the Put buyer will have right to Sell an underlying asset to you at strike price within validity of the contract period.For example if you have sold put option of RIL at Strike price 1300, the put buyer has a right to sell RIL to you at 1300. Now imagine, when he will do that, when market price of RIL decreases from 1300 to say 1000. if RIL decreases and opens at 900, put option buyer will ask you to buy 500 RIL at rs 1300 and since price of RIL is less than 1300, you will increase the difference as loss. Here you will be ready to take unlimited loss in exchange of fixed profit. However here your chance of profiting is also higher because you will be making money in 2 out of 3 scenarios viz,. if stock stays stable and goes up. Hope you guys find this video useful . Please like my videos and subscribe to my channel for regular updates. Why you should subscribe to this playlist: Connect with me: https://www.facebook.com/Nifyfy/ https://twitter.com/cakashoza https://plus.google.com/109416086497755161450

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