Help - Buying farthest ITM PUT

[manojborle]

Hi All Options Trader,

need your help to understand buying puts and strike price.

I am expecting AXISBANK to go down which is currently trading at 1000 levels.
What is see that the 1250 strike price LTP is very low at 4 (so it will cost me 4*250=1000 premium). If I buy this put, and at the end of expiry if AXIS goes to 990, will I profit? Will the premium change?

Summary of my question:
What I want to ask is that if I buy the farthest put and if the stock does not touch it or goes below by very small amount , will I be always in profit? Whats wrong with this strategy of buying farthest put avaiable?

Pls explain, if possible with my example as above.

First of all check LTP, 1250 strike has not traded at all.

 

[iTrade]

Thank you all for helping me out. It really helps.