What Is Buy Put Option -

When you buy a put, you are essentially betting that the stock price will fall below the strike price before the expiration date. Example: Speculating on a Drop

To profit, the stock must fall below the strike price by more than the premium you paid. What Are Put Options and How Do They Work? - IG UK what is buy put option

Buying a put option is a powerful bearish strategy used by investors to profit from a stock's decline or to "insure" their existing portfolio. Unlike buying a stock where you want the price to go up, buying a put option increases in value as the underlying asset’s price drops. What is a Put Option? When you buy a put, you are essentially