How To Sell Put Options in Zerodha With Some Tips


Finance Guru Speaks: This article will guide you on how to Sell PUT (PE) Options in Zerodha.

How To Sell Put Options in Zerodha

Zerodha, as a Trading and Demat Account, has gained very wide popularity because of very low-cost trading and ease of use. If you don't have the Zerodha account, then you can open it through this LINK. It is very easy to open a Demat Account in Zerodha.

Please read the complete article. I have shared 6 Tips at the end of the Article. Please comment, share and like this article for the constant encouragement.

To begin with, selling Put Option is also known as SHORT PUT position. In India, we denote Put Option as PE (Put European).


Why and When do you sell Put Option:


You Sell Put Option only when you are sure that the Index or Stock Price (Spot or Underlying Price) will not go below the Strike Price during Expiry, meaning you are moderately Bullish. You will be in gain till the Spot Price remains higher or equal to the Strike Price. As you are a Seller, you will receive Premium from the Buyer which will be your Maximum Profit if everything goes as per your expectations.

Steps to Sell Put Options in Zerodha:-


1. Login to Zerodha after clicking here. Provide your User ID, Password, and then your assigned PIN to Login.
Zerodha Login
Zerodha Login Screen
2. On the Home Page, go to the Watchlist on the left-hand side and Search the required Put Strike to sell the PE Option and click on S button. As an example, we are selling NIFTY JUL Series 9700 PE Option as shown below. You can also select any Stock which is open for FnO trading.:-

How To Sell Put Options in Zerodha
Click to enlarge
3. On the Next Screen, fill Sell Order details as shown below. To keep it simple, we are selling 1 LOT (equal to 75 Shares) of NIFTY at a selling price of 35. The last traded price for JUL Series 9700 PE Strike is 31.10.

With INR 35 as your Sell Price, you will receive a Total Premium of 35x75 = INR 2625 from Buyer.

It is a positional order, meaning we are not selling this Put Option for Intraday Trading. Once you fill all the details, click on Sell button:-

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