options trading for beginners - What is put options in reality



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 options explained Hi Guys, In this video, I will explain what actually happens when you Buy put options. When you buy put option you are buying a right to sell that particular stock/indices at certain price which is fixed within fixed amount of time. For example if you are buying put option of reliance at strike price of rs 1300, it means, say you have bought the RIL option having expiry of 30 days, you will be able to sell 500 shares of RIL at fixed price of Rs 1300 within 30 day assuming that you have bought option on the first day. So when price of RIL will decrease from rs 900, your contract value will strat to increase and in turn you right to sell that 500 RIL at Rs 1300 will also become more valuable than before. As a result your PUT option premium will also increase. Hope you guys find this video useful . Please like my videos and subscribe to my channel for regular updates. Connect with me: https://www.facebook.com/Nifyfy/ https://twitter.com/cakashoza https://plus.google.com/109416086497755161450

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    Duration: 3m 19s

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