Long Put option strategy
Buying 'Put option' is the most basic & simplest strategy. It is recommended when your outlook on the underlying asset is negative & you expect the underlying asset price to fall.
Payoff at expiry
Nifty, lot size 65 · Nifty future 25,151 · 17 Nov 2026Legs
| Action | Option | Strike | Lots | Qty | Premium |
|---|---|---|---|---|---|
| BUY | ATM Put | 25,150 | 1 | 65 | ₹111.53 |
How it works
- Buy 1 ATM put at the 25,150 strike for ₹111.53, paying the premium.
- You pay a net ₹7,249 upfront for the position. This is the most you can lose.
Below 25,038 you profit, and profit grows as Nifty falls.
Above 25,038 you lose, up to ₹7,249.
Set-up: Buy 1 lot ATM Put.
What happens if Nifty moves
Profit or loss at expiry| Nifty at expiry | Move | Profit / loss |
|---|---|---|
| 23,650 | −6% | +₹90,251 |
| 24,400 | −3% | +₹41,501 |
| 24,900 | −1% | +₹9,001 |
| 25,150 | Unchanged | −₹7,249 |
| 25,400 | +1% | −₹7,249 |
| 25,900 | +3% | −₹7,249 |
| 26,650 | +6% | −₹7,249 |
How the Greeks affect it
When to use
When you expect a fall in the underlying asset price.
- Unlimited profit potential with capped risk.
- Possibility of greater leverage than selling naked future.
Things to watch
- 100% potential loss of premium in case of inappropriate strike, choice of stock, time decay.
- Greater leverage could prove detrimental in case the expected outlook fails.
Long Put: questions
What is a Long Put strategy?
Buying 'Put option' is the most basic & simplest strategy. It is recommended when your outlook on the underlying asset is negative & you expect the underlying asset price to fall.
When should you use a Long Put?
When you expect a fall in the underlying asset price.
How do you set up a Long Put?
Buy 1 lot ATM Put.
What is the maximum profit of a Long Put?
Maximum reward remains uncapped.
What is the maximum loss of a Long Put?
Since it is a net debit trade you pay for buying the Put option upfront i.e. Premium. Your maximum risk is capped.
What is the breakeven of a Long Put?
With Nifty at 25,151, the example on this page breaks even at 25,038 at expiry.