A long put is a bearish options strategy in the Indian stock market where an investor buys a put option, granting the right to sell a stock at a predetermined strike price within a specific timeframe. This strategy becomes profitable when the stock’s price falls below the strike price, as the investor can sell the stock at a higher-than-market rate, capturing the difference as profit. The long put strategy is ideal for investors who anticipate a significant decline in the stock’s price and want to capitalize on that movement without holding a short position. Since the maximum risk is limited to the premium paid for the put option, it allows investors to limit potential losses while benefiting from sharp downward price shifts. NSE and BSE facilitate long put transactions across various stocks and indices, enabling investors to implement this strategy with robust market data and options analysis tools.
The long put is particularly valuable for hedging purposes, as it can offset potential losses in an investor’s portfolio if certain stocks are expected to decline. By holding a long put, investors can protect their portfolios against downside risk in a falling market, securing profits even if the broader market experiences a downturn. Additionally, long puts can be used to leverage profits in bearish markets, as the return potential is significant if the stock declines substantially below the strike price. The NSE and BSE provide a well-regulated environment for put options trading, with access to real-time pricing, volatility measures, and analytical resources, empowering investors to make informed decisions. The long put strategy appeals to those seeking to benefit from or protect against downward market trends while managing risk within defined limits.
567/16, Anand Nagar, Jail Road, Lucknow, Uttar Pradesh - 226005
Office No. 1101, 11th Floor, Real Tech Park, Plot No. 39/2, Sector-30A, Vashi, Navi Mumbai 400703
+91-9044447558 +91-7400041121
info@amitguruhsachdeva.com
support@amitguruhsachdeva.com
agsvashi@amitguruhsachdeva.com
SEBI registered Research Analyst (INH100005190) BSE Enlistment No.5253
General Disclaimer
Risk Disclosure on Derivatives
Source: SEBI Study
By continuing to use our services and by proceeding further, you are acknowledging the underlying risks and uncertainty associated with trading and investment in financial markets. You agree to bear the full liability for the same.
SEBI Registered Research Analyst (INH100005190) BSE Enlistment No. 5253
Learn and earn in the market with Amit Guruh Sachdeva!
This will close in 0 seconds
“सतर्कता: हमारी साझा जिम्मेदारी”
“Vigilance: Our Shared Responsibility”
Observed from October 27 – November 2, 2025
