### Key takeaways from this chapter

1. Buy a Put Option when you are bearish about the underlying prospects. In other words, a Put option buyer is profitable only when the underlying declines in value.
2. The intrinsic value calculation of a Put option is slightly different from the intrinsic value calculation of a call option.
3. IV (Put Option) = Strike Price – Spot Price
4. The P&L of a Put Option buyer can be calculated as P&L = [Max (0, Strike Price – Spot Price)] – Premium Paid
5. The breakeven point for the put option buyer is calculated as Strike – Premium Paid

Hi

2. samyak says:

Is the breakeven for that PE option is 2632.5 is that right:-Premium Paid+Strick Price

• Karthik Rangappa says:

Yes, I guess ppl have commented on the videos as well.

3. Ashwin says:

Break even is 2487.50 i.e strike price minus premium

• Karthik Rangappa says:

4. sanjay shah says:

put option buyer & seller-breah even point-2487.50

• Karthik Rangappa says:

Yeah.

5. Jitin Kapila says:

I have a question and an errand:

Question: The premium is the only price that the buyer has to pay as in is that not any multiplication with lot size.? For more clarity based on reliance example taken:
Realised Loss = Premium Paid = 72.50
OR
Realised Loss = Premium Paid * Lot Size = 18,125 (72.50 * 250)

Errand: At 4 Mins when mentioning the Lot Size of trade we added the rupee symbol to it.

I all and whole thank you so much for this series. This is super super content to start things up. 🙂

• Karthik Rangappa says:

Its premium * lot size, Jitin. Lot size is a number, not in Rupees 🙂