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Optionalysis: Writing Long Term Puts As A Mechanism to Buy Nifty at 18 P/E or Lower

The markets have fallen: and we are apparently going into a bear market just today. This is just nomenclature - we've been in a bear market for a LONG time now and this 20%- fall-from-the-top commentary could just tilt things in favor of going bullish, at least temporarily.

But the point about this fall can be looked at in multiple ways:

1) At what point would you go long, saying there's value in today's market?

2) If markets might see further downside, but we think it's at a good point today, can we build a strategy that benefits from the upside, but doesn't hurt on the downside?

We have written - two years ago now - a post on how you can build your own Capital Protection Plan in three ways. The concepts there still apply, and we're going to do one additional twist today. We will try and buy the Nifty at a lower level.

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