Zerodha....

[megapixel]

In a bearish market we buy Put option . If the market falls Put option prices rises and we can pocket the differences ....that is our profit.

My question is : If market falls why Put option prices rise ? I don't get this part. ...this does not make sense to me ...what is the logic here ?

Can anyone please explain this ?

 

[timepass]

In a bearish market we buy Put option . If the market falls Put option prices rises and we can pocket the differences ....that is our profit.

My question is : If market falls why Put option prices rise ? I don't get this part. ...this does not make sense to me ...what is the logic here ?

Can anyone please explain this ?

If you buy 5200PE, it means that you are betting against nifty reaching 5200. So, the lower it goes, the stronger your bet is. That's why the price of the put rises.

On expiry, if Nifty futures expire at 5150, your put is worth (5200-5150) = 50 Rs.

Before expiry, if nifty futures are at 5150, the value of the put may be higher due to various factors.

 

[sansarva]

In a bearish market we buy Put option . If the market falls Put option prices rises and we can pocket the differences ....that is our profit.

My question is : If market falls why Put option prices rise ? I don't get this part. ...this does not make sense to me ...what is the logic here ?

Can anyone please explain this ?

To add to what timepass has said,

The concept behind put is when you buy a put of say nifty 5000 ( and market is at 5100) , what your contract is saying is you have the obligation to sell to that guy at nifty 5000.

Now at expiry market is still at 5100 ,
will you do it , by excersing the obligation you have to buy from market nifty at 5100 and sell to the guy at 5000. no you won't . so the value of option is nothing.

I f market falls you can buy nifty cheaper from market ( may be 4900) and sell to the guy at 5000, you make profit.

Hence option value goes higher as market falls.

This is only the concept, you can't buy nifty, shares yes.

By the way why not google , you may have better resources than what could be answered by members.

 

[binarycodes]

How do you keep updating the stop loss triger in NSE Now? Like initially i bought for 100 and put a SL trigger at 95. Now I want to update the SL to 105. Is this possible?

 

[Sunny1]

How do you keep updating the stop loss triger in NSE Now? Like initially i bought for 100 and put a SL trigger at 95. Now I want to update the SL to 105. Is this possible?

may be try modifying order ...?

 

[sumosanammain]

How do you keep updating the stop loss triger in NSE Now? Like initially i bought for 100 and put a SL trigger at 95. Now I want to update the SL to 105. Is this possible?

The Mind can move mountains, whats a stoploss

Think real hard, really really hard with all your might, and you will slowly see the sl creeping up towards 100. Then iincrease your thought intensity, and it will move to 105.

I f this is too difficult for you, you always modify the order from the pending order pane

 

[adityasaraf007]

The Mind can move mountains, whats a stoploss

Think real hard, really really hard with all your might, and you will slowly see the sl creeping up towards 100. Then iincrease your thought intensity, and it will move to 105.

I f this is too difficult for you, you always modify the order from the pending order pane

I have a question for you....

How do YOU modify an order? :rofl::rofl:

 

[sumosanammain]

I have a question for you....

How do YOU modify an order? :rofl::rofl:

I dont need to. I move the markets in my favour, by the might of my mind.

There is a special magic sentence that needs to be said, of course, but thats not to be disclosed here.

 

[adityasaraf007]

I dont need to. I move the markets in my favour, by the might of my mind.

There is a special magic sentence that needs to be said, of course, but thats not to be disclosed here.

 

[timepass]

I dont need to. I move the markets in my favour, by the might of my mind.

Simple.. then use the might of your mind to modify his order