Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial

SOS Trade: Buy Nifty Puts


It’s probably the lousiest day to set up a short, after the index is nearly 3% down; but I’m getting the feeling it’s going down further. Worst case, I lose some virtual money.

So I’m buying Nifty puts for 4400, for August – which will expire next week, so it’s a short term trade. The puts were last traded at 139.05, and I will put 40% of hte net portfolio on it – that’s 20L. Since each contract (50 Nifty) is 2.2L in size, I’ll be buying 8 contracts – or 400 Nifty puts.

The cost is 55,000 and I expect to close this trade next week. Let’s see how it goes.

Disclosure: Short the Mini-Nifty today. Just to check something out.


Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial