Option Trading (Tata Steel)

Hello,
i am new in stock market.I have some query related to option trading.As far as i know that "Buyers of Put" is a bearish call.
If i buy a put of Tisco at strike price 400 ,for October 29th expiry at price of Rs 117 .what does that mean?.i thing this strategy will help me to win as Tisco is not going to cross 400 by 29th Oct.Need suggestion from an expert.

Subrata

Welcome Subrata to the Forum!!! May not be a proper way to enter the Stcok Market directly into Options!!! Just my view!!!
When you buy a Put of TataSteel Strike 400 at 117/- and assume you hold it till expiry.
You gain only if TataSteel closes below 283.00 (400-117).

This in fact means that you have shorted Tata Steel at 400, but you paid Rs.117/- as premium for it!!

Now you will get the difference of 400 less the Settlement price (closing price). If it closes at say 250,you get 400 less 250=150, i.e 150minus 117=33 is your profit!!!
If it closes at 350, you get 400-350=50, i.e. 50-117=67 is your loss!!
However if it closes at say 500/- you loose only Rs.117/- paid by you and not any more!!!

You may he helped by downloading the file from the link,

http://www. 4shared. com/file/44137389/8397b5a5/Step_By_Step_Learning.html

Thanks Sir for your reply.its now crystal clear to me.

Subrata

@subrata
exit from that option by squaring off... because in this week the market may recover from its early damage. hence try to call instead of put.