Put Writers News Today

“The macro setups where we feel that there is a lot of headroom left are the ones to be reinitiated at these levels or added on to this correction. So, all is well, we need not worry. It is eventually a bit of a pullback, which was much needed. Even if it extends another 200-300 points from here, that would be a welcome dip.”

Options trading involves the strategic buying and selling of contracts. The buyer has a choice, not an obligation, to buy or sell the underlying asset, while the seller (or writer) must honour the contract if exercised.

“Nifty continued to exhibit strength as the index reached new highs due to large-cap banks and IT stocks. Strong Put writing at 20,100 has further bolstered positive sentiment in the market.”