Short Put
Sell a put, pocket the premium — but agree to buy if the market falls.
Definition
Short Put means selling (writing) a put option. You receive the premium upfront and take on the obligation to buy the underlying at the strike price if the buyer exercises. It is a neutral-to-bullish trade: you keep the full premium as long as the underlying stays above the strike.
Why it matters
Selling puts is a popular income strategy and a way to buy a stock you like at a discount. Your maximum profit is the premium; your risk, however, is large — the underlying can fall sharply to (theoretically) zero, leaving you owning it well above market price. Because of that obligation, the position requires margin and disciplined position sizing.
Example
You sell a NIFTY 22,000 put for 120. If NIFTY expires above 22,000, the put expires worthless and you keep the 120 premium. Your break-even is 21,880 (strike minus premium). If NIFTY falls to 21,700, the put is worth 300, so you face a loss of 180 per unit despite collecting the premium (illustrative figures).
See it live
Compare live put premiums and open interest across strikes on TradePulse's option chain.