New Delhi, Sept. 25 -- A sharp fall in Policybazaar parent PB Fintech's shares on September 24 created one such opportunity for traders holding bearish positions in the futures and options (F&O) segment.

PB Fintech shares plunged around 35% during the session, triggering a sharp rise in the value of put options. The stock's market capitalisation fell by around Rs.30,000 crore in a single day.

When a stock falls sharply, its put option can rise significantly in value because a put gives the buyer the right to sell the stock at a predetermined price.

The trade involved the 1,600 put option (PE). A put option generally gains in value when the underlying stock falls, making it a way for traders to take a bearish position.

For example, if ...