A Put Option is a financial contract that gives the buyer the right, but not the obligation, to sell an asset at a fixed price (strike price) on or before a specific date.
A Put Option is mainly used when an investor expects the price of an asset to fall. It allows the holder to sell the asset at a predetermined price, protecting against losses or enabling profit from a decline.
Put options are traded on exchanges like the National Stock Exchange and Bombay Stock Exchange, under the regulation of the Securities and Exchange Board of India.
"An investor buys a put option with a strike price of ₹100. If the stock falls to ₹80, they can sell at ₹100 and make profit."